Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied significantly during the course of the week, as we continue to recover after the massive selloff. At this point, we are threatening the 0.72 area, an area that I think is crucial for the longer-term trend. If we can break about 0.72 area, then I think we could recover to reach the 0.75 handle. It is worth noting that we are still structurally in a downtrend though, so with that being the case you need to look for signs of exhaustion until then.
The 0.70 level underneath is a large, round, psychologically significant figure, and an area where we had seen quite a bit of support. The question now is whether or not they have defended it enough? There are a lot of concerns as to what the Federal Reserve may do going forward, as interest rate markets have shown as of late. Ultimately, I think this is a scenario where we will be finding plenty of interest, and it could give us a bit of a “heads up” as to where we go next. Because of this, you will probably need to be cautious and pay attention to shorter-term charts such as the daily timeframe, or even the four-hour timeframe to see signs of exhaustion or increased momentum to the upside.
Looking at this chart, we have made a succession of “lower lows”, so that is something that you need to pay close attention to. Given enough time, I think we have a situation where the market will have to make a longer-term decision, but right now we are still very much in a downtrend, at least as things stand at the moment.
AUD/USD Price Forecast Video 30.05.22
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This article was originally posted on FX Empire