Yahoo Finance AUD/USD Price Forecast – The Australian Dollar Falls
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially tried to rally during the session on Wednesday but gave bank gains to show signs of weakness again. Furthermore, the market has broken through the bottom of the previous candlestick, turning it into a “hanging man.” This is a technically bearish pattern, and therefore a lot of people will pay attention to it. Ultimately, this is a market that looks likely to go looking to the 0.70 level over the next move, perhaps threatening a longer-term continuation.
If we do rally, at this point it’s likely that the market continues to follow the overall downturn, perhaps opening up the possibility of a move to the 0.68 level. Ultimately, I like the idea of fading the market, at the first signs of exhaustion on a short-term chart. I do not believe in buying this pair until we break above the 0.72 level, which is above the 50 Day EMA as well. Ultimately, this is a market that is going to follow risk appetite quite tightly, which of course has struggled a bit during the day, and it is likely we will continue to see the US dollar attract a certain amount of attention as long as there are concerns.
The one thing that has helped has been the bond markets relinquishing some of the selling, driving yields a bit lower. That being said, the US dollar is still going to be favored for its safety, especially as we continue to see so many concerns around the world through inflation, supply chain issues, and of course geopolitical concern in various spots.
AUD/USD Price Forecast Video 26.05.22
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This article was originally posted on FX Empire
