Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied a bit during the trading session on Monday to break above the 0.68 level, but at this point, it looks like we are going to see a lot of noisy behavior, especially as we are in a major downtrend. That being said, we are a little oversold at this point, so a recovery rally is not out of the picture. The market has bounced from the 0.6750 level, which is an area that has been supported a couple of times.
At this point, we have formed a couple of nice green candlesticks, but at the end of the day, this is still a very negative-looking market. To think that the macro environment has completely changed would be a major stretch, so at this point, it’s likely that we would see the US dollar pick up strength for some time. Ultimately, I think this is a market that I think will try to break down for that support. That being said, if we were to break down below the hammer on Thursday, that could open up massive selling because we are sitting right on a crucial area based on the weekly charts. In fact, we break through this area, we could see the Australian dollar unravel quite drastically.
On the other hand, if we were to break higher and clear the 0.6850 level, we may go looking to reach the 50 Day EMA which is at the 0.6950 level and dropping. Above there, we have the 0.70 level, which is crucial from a longer-term standpoint.
AUD/USD Price Forecast Video for 19.07.22
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This article was originally posted on FX Empire