Australian Dollar Running Into Resistance

The Australian dollar has gone back and forth during the trading session on Wednesday as it looks like we are hesitating to attempt a breakout above the 0.75 handle. Because of this, the market is likely to continue seeing a lot of noisy behavior, and at this point in time, the market is getting a little bit stretched, which quite frankly we have seen all over the world when it comes to Forex markets. Because of this, the market is likely to have a bit of a drop here, because the 0.75 level has been a massive level of importance multiple times.

AUD/USD Video 24.03.22

If we do break above the 0.75 handle, then it is likely that the Aussie dollar becomes more of a “buy-and-hold” market. However, if we pull back from this area then I think we go looking towards the 0.7350 level. This is where the 200 Day EMA is currently residing, so I think the pullback will probably find some interest in that region. The market will continue to be noisy, but that is always going to be the case with currency.

As we continue to have a lot of geopolitical issues, inflation issues, commodity market issues, and a whole host of concerns when it comes to growth, it is going to be difficult for the Australian dollar to simply go straight up in the air. I do think that a pullback makes quite a bit of sense, and it could lead to the possibility of picking up a little bit of value underneath. Expect a lot of noisy trading over the next couple of days but I do think we continue to respect the 0.75 handle.

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