AUD/USD Price Forecast – The Australian Dollar Continues to Flounder

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied on Friday but gave back quite a bit of the gain rather quickly. The Australian dollar continues to suffer at the hands of the US dollar which is in the midst of a tightening cycle through its central bank, so it does make a certain amount of sense, that we should be in this area trying to break it down.

The 0.6850 level is an area that has been important a couple of times, so it’s probably worth noting that a breakdown below that level could open up the possibility of a move down to the 0.68 level. If we were to break down below that level, then it’s likely that we continue to go lower. At that point, it would make quite a bit of sense for the market to go to the 0.68 level over the longer term.

If we were to turn around and break above the top of the candlestick for the trading session on Friday, then it’s possible that the market could go looking to reach the 0.70 level. The 0.70 level is a large, round, psychologically significant figure, and should attract a certain amount of attention just because of that. If we were to break above that, then we may have an opportunity to short the Aussie at higher levels.

The 50 Day EMA comes into the picture as well, so that is something that could be an area of interest. Nonetheless, I think this market continues to be a “sell on the rallies” type of market going forward. Ultimately, I think this is a market that continues to find plenty of reasons to drop.

AUD/USD Price Forecast Video 27.06.22

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This article was originally posted on FX Empire

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