Yahoo Finance AUD/USD Price Forecast – Australian Dollar on The Precipice
The Australian dollar has rallied a bit during the trading session on Monday to show signs of recovery, as the 0.75 has caused a lot of noise. That being said, it will be interesting to see how this plays out because if we do break down a little bit, then the market is likely to go much lower, perhaps as low as the 0.71 handle. After the last couple of days, it is very likely that we will see continued downward pressure given enough time. The question at this point is whether or not we are going to bounce and break down, or are we going to turn everything right back around? I suspect it is going to take quite a bit of effort to turn this thing around.
AUD/USD Video 22.06.21
If we break down below the bottom of the Monday candlestick, that probably opens up a little bit of a “trapdoor” kind of situation, where we could break down rather drastically. Ultimately, the US dollar strengthening does make quite a bit of sense considering that the Federal Reserve has suggested that they are much closer to tightening than originally thought. Furthermore, we are below the 200 day EMA, which for some traders will be reason enough to get short based upon a longer-term movement.
I suspect that the next couple of days will determine what happens longer term. Ultimately, the market has clearly had a shock, so one would think that it would only take a little bit of a push to make things fall apart again, because quite frankly there is a lot of fear out there suddenly.
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This article was originally posted on FX Empire
