The Australian Dollar Continues to Grind Back and Forth

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally during the trading session on Thursday but gave back gains rather quickly. At this point, it looks as if the Aussie is more likely than not going to continue to reach the 0.74 level. The real question is what happens when we get to the 50 Day EMA. If we can break it down below there, it may bring in more sellers in this market that as of late have been decidedly cautious.

Keep in mind that the Australian dollar is highly levered to commodities, which have seen a little bit of potential demand destruction. If the global economy is going to continue to slow down, it is difficult to imagine that hard commodities, which the Australian economy is heavily levered to, will continue to strengthen. With that being the case, I think is very likely that you will see the Australian dollar pay special attention to whether or not there is going to be a pickup in economic activity.

At this point, rallies continue to look as if they are selling opportunities, with the 0.75 level being especially interesting. The market will more likely than not be choppy, but when you look at the longer-term chart, you can see just how important the 0.75 level has been over the last several months. The question now is whether or not we are pulling back to finally break out, or are we simply reacting to the top of the larger consolidation area? At this point, it looks like we are trying to decide this pivotal question.

AUD/USD Price Forecast Video 15.04.22

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