AUD/USD Price Forecast – The Australian Dollar Continues to Reach Higher

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Monday to break above the 50 Day EMA. By doing so, the market looks as if it is threatening the 0.72 level, an area that I have been talking about for weeks. I believe that this is the reach of the market that needs to break above to prove itself, but quite frankly there has been such a massive turnaround that I believe it’s difficult for the momentum to pick up from here.

I’m looking for signs of exhaustion that I can get involved in, as I do believe they offer opportunities. After all, the Australian dollar is highly levered to growth, something that we are not expecting to see much of around the world shortly. I will be paying close attention to the Tuesday candlestick, and if we were to break down below the 0.71 level, I think at that point I will start shorting again.

Alternatively, if we were to break above the 0.72 level on a daily close, then I would have to start buying. (Remember, it’s not what the market is “supposed to do” that you are trading, but rather what it is doing.) If we do break to the upside, I would anticipate that eventually, we go looking to reach the 0.75 level. Bond yields in America have dropped a bit, but if people start piling into bonds again, that dries up demand for the US dollar as well. From a fundamental standpoint, I find it very difficult to imagine the US dollar getting eviscerated at this point, but all we can do is follow price action.

AUD/USD Price Forecast Video 31.05.22

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