Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially tried to rally during the trading session on Tuesday but gave back gains to show signs of weakness. By doing so, the market looks as if we are going to continue to see an attempt to push through the bottom. If we do, that could open up the Aussie dollar for a challenge of the 0.68 handle and then after that the 0.66 level.
Because of this, I would be very cautious about trying to buy this market, even though we could get a little bit of a bounce. That balance will more likely than not only bring out fresh selling as this is a market that has been negative for good reason.
Going forward, this is a market that will see the 0.70 level as a major resistance barrier, so I think it’s going to take quite a bit of effort to get through that area. If we do, that’ll be impressive, but I do not think it’s something that changes much, because there is still so much further to go in order to make up for the losses. Because of this, I think that you are looking for opportunities to “fade the rally” when rallies do in fact eventually happen.
Because of this, I believe that we have a situation where the market is going to eventually play out in favor of the US dollar, regardless of what happens next. With interest rates in America rising, and serious concerns about global demand destruction for certain commodities, I believe that the Australian dollar is in a very precarious situation. However, it should be said that there is a lot of support just below on longer-term charts, so it may take a while to break through it.
AUD/USD Price Forecast Video 15.06.22
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This article was originally posted on FX Empire
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