Yahoo Finance AUD/USD Price Forecast – Australian Dollar Powers Higher
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied quite nicely during the trading session on Friday to reach toward the 50 Day EMA. The 50 Day EMA is an indicator that a lot of people pay attention to, although it’s not necessarily a guaranteed place of resistance. That being said, this is a market that I think is going to face quite a bit of selling pressure in the immediate future, especially near the 0.72 level.
That being said, people are starting to challenge the Federal Reserve and whether or not it can actually tighten monetary policy anywhere near as much as people had been pricing previously. Bonds are starting to get a little bit of a bed, driving the yield down, so that has softened the US dollar as of late. Whether or not it is something that lasts for any significant amount of time is a completely different question, but at this point, it certainly looks as if it is the main play for traders right now.
On the downside, the 0.70 level should be significant support, as it is a large, round, psychologically significant figure, and an area that we have seen a lot of noise at previously. At this point, we will be asking quite a few questions about the Aussie and if we can break above the 0.72 level, then I think we go back to an overall uptrend. The next day or two could be crucial for the market, so pay close attention to price action as it could give you a bit of a “heads up” as to where we are going next. What will be especially interesting is to see how traders position themselves heading into the weekend.
AUD/USD Price Forecast Video 30.05.22
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This article was originally posted on FX Empire
