Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially tried to rally during the trading session on Monday but gave back gains rather quickly. At this point, it looks as if the Aussie has no real support, and it is likely that we also make a serious attempt to test the 0.70 level. The 0.70 level is a large, round, psychologically significant figure, and an area that will attract a lot of attention. It is the bottom of the overall consolidation area that we have been in for a while, with the 0.75 level above offering resistance.
The market continues to be choppy down near this area, which you would expect. After all, there is a lot of interest in the Aussie down here, but the reality is that the market seems to be very frayed at the moment, and as a result, riskier assets such as the Aussie dollar will continue to be shunned by traders in general. Because of this, the market is more likely than not going to fade rallies, just as we have seen multiple times over the last week or so. Ultimately, looking at this chart it is likely that we see a lot of back and forth, but if we were to break down below the 0.70 level, the next target is going to be the 0.68 level.
If we break above the 0.72 level, it is likely that we could go looking higher, but it is going to take a Herculean effort to make that happen. Ultimately, this is a market that I think continues to struggle overall, and therefore we need to be looking towards the downside every time it does rally.
AUD/USD Price Forecast Video 03.05.22
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This article was originally posted on FX Empire
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