The Australian Dollar Breaks Through the 200 Day EMA

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has broken down during the trading session on Friday to slice through the 200 Day EMA. The market looks very likely to continue seeing the Australian dollar as negative, because the Federal Reserve is so tight with its monetary policy, and now we are starting to look at the possibility of a global slowdown. With that being the case, it does make a certain amount of sense that we would see the US dollar favored over the commodity currencies.

Now that we are closing below the 200 Day EMA, that should open up even further selling. At this point, the market could go reaching to the 0.72 level underneath, which of course is a large, round, psychologically significant figure, but it is also an area that is relatively minor when it comes to support and resistance. The size of the candlestick is also very negative, and it looks as if there should be a bit of follow-through as we head into the next weekend. Any rally at this point will more than likely invite a bit of shorting, at the first signs of exhaustion.

The market had completely repudiated the green candle from the Wednesday session now, and it looks as if the sellers are simply starting to overwhelm anything that the buyers can muster. If commodities rally, that could help, but ultimately this is a market that I think is going to have a lot of fear pumped into it, and therefore I still favor the greenback. We are starting to see that across the board in the Forex world.

AUD/USD Price Forecast Video 25.04.22

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