AUD/USD Price Forecast – The Australian Dollar Continues to Probe Support

·2-min read

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar fell rather significantly during the session on Wednesday to reach the 0.6850 level again. This is an area that has been supported multiple times, so it should not be a huge surprise that we have bounced a bit. The market continues to be noisy, which makes quite a bit of sense considering that the Aussie is so highly levered to commodities and China. It does look like China is going to stimulate its economy, so in theory that could help things out. That being said, the Federal Reserve continues to tighten monetary policy, which strengthens the US dollar.

Looking at this chart, the 0.70 level above is a major resistance barrier, as it is a large, round, psychologically significant figure. Furthermore, it’s an area that we have seen a couple of times. If we do break above there, then it’s possible that the 50-Day EMA above is dropping and should offer dynamic resistance. If we can break above there, then it’s possible that we could reach the 200 EMA indicator, which is also going to be dynamic resistance.

If we were to break above the 0.7280 level, then I think that would be a major turnaround and could get the Aussie flying to the upside. I don’t see that happening, and therefore I think it is probably only a matter of time before we would see this market find sellers, so I think it’s more of a “fade the rally” type of situation, and therefore I’ll be looking for signs of exhaustion above that we can take advantage of. Ultimately, if we can break it down below the 0.6850 level, we could threaten the 0.68 level, which opens up the door to much further selling.

AUD/USD Price Forecast Video 30.06.22

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This article was originally posted on FX Empire