Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially pulled back during the trading session on Thursday, as we have seen a lot of volatility and negativity out there. That being said, we turned around and bounced, but sooner or later, it looks as if the 0.6850 level will be broken. If and when we break it down to that level, then the number to pay close attention to is the 0.68 level, as it is a major support level, and an area that I think will continue to be important.
If we break it down below the 0.68 level, then it’s likely that the market flush is much lower, perhaps reaching the 0.66 level, and beyond. That would be a very negative turn of events, and it could be a huge move lower just waiting to happen. Alternately, we may rally from here, but the 0.70 level should continue to be a huge psychological barrier, as well as structural.
Keep in mind that the Australian dollar is highly levered to the commodity markets, therefore it’s very important that you pay attention to what they are doing. Currently, the only market that looks really healthy is the oil market, so that could be telling us something. If we are about to enter a global slowdown, it’s likely that the Australian dollar will pay the price. After all, Australia provides a lot of hard materials such as copper, iron, and aluminum to the rest of the world. On the other side of the trade, we continue to see the Federal Reserve tighten monetary policy.
AUD/USD Price Forecast Video 01.07.22
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This article was originally posted on FX Empire
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