Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied significantly during the week, from an oversold condition. Quite frankly, the US dollar had been overbought against almost everything, so the Aussie would not be any different. Now that we are above the 0.70 level, it will be interesting to see whether or not we can continue to go higher. I doubt we can, lease not for any significant amount of time, as the Federal Reserve continues to see reasons to tighten financial conditions. All things being equal, this is a market that I think given enough time will show signs of exhaustion you can jump on.
The 0.70 level is an area where we see a lot of noise, but now that we have sliced through it a couple of times, I suspect that will we have got going on here is a situation where we would have a lot of value hunters coming in to pick up the greenback every time it shrinks a bit. That being said, markets cannot go in one direction forever, so this bounce does make a certain amount of sense. It is more or less a situation of “back and fill” going forward, so when the value does occur for the greenback, there are a lot of people that will be more than willing to jump in.
In fact, it is not until we break above the 0.72 level that I would consider the Aussie dollar making a serious attempt to recover longer term. That does not seem likely at this point, so I am simply waiting for signs of exhaustion on shorter-term charts to trade the weekly chart so that I can fine-tune my entry.
AUD/USD Price Forecast Video 23.05.22
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This article was originally posted on FX Empire