Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially tried to rally during the trading session on Tuesday but gave back gains as we broke above the 0.70 level. It is worth noting that the CPI numbers in the United States were a bit stronger than anticipated, so this has had a bit of a turnaround to the United States dollar. This is a continuation of what we have been seeing for a while, as the US dollar is by far the strongest currency as far as the majors are concerned.
The Australian dollar of course is highly sensitive to commodity markets and of course global risk in general. This is a scenario where it looks like we continue to find plenty of sellers every time we rally, which has been the case for a while. If we were to break down below the bottom of the candlestick during the previous session, then it is possible that we could go looking to the 0.68 level. There is a lot of noise in this general vicinity, so I think it is only a matter of time before we get a move, but it will be very choppy, to say the least.
Ultimately, this is a market that I think will continue to be very noisy, so you need to be cautious with your position size. Because of this, the market is likely to be one that you need to be very flexible with, but obviously, it is a market that you can only look to the downside based on what we have seen over the last several weeks. At this point, we would need to break above the 0.72 level before one could consider going long.
AUD/USD Price Forecast Video 12.05.22
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This article was originally posted on FX Empire
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