AUD/USD Price Forecast – The Australian Dollar Continues to Be Noisy

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Wednesday as we continue to look at the 0.70 level like a magnet for price. That being said, it is worth noting that the last couple of candlesticks have been very bullish on the daily chart, so to take a bit of a breather would not be a huge surprise. However, it is worth noting that we are in a major downtrend and of course, the interest rates in the United States continue to rise. Furthermore, the market will continue to look at global risk as a potential problem for commodities, at least some of them. Copper has looked a bit vulnerable as of late, and that can have a bit of a “knock-on effect” on the Australian dollar as well.

Even if we do rise from here, the 0.72 level is the top of the noise just above, and the 50 Day EMA has popped into the picture. And therefore, I would be a seller of signs of exhaustion above here as well. Ultimately, I do not have any interest in trying to buy this pair until we break above the 0.72 level at the very least. Once we get above there, then I will reevaluate the entire situation, but I suspect this is probably more about the US dollar than anything else. The slowdown in China is probably weighing down the Aussie dollar as well, so when you put it all together and add the fact that Jerome Powell has suggested that the Federal Reserve could go “beyond neutral” with interest rates, it could be driving money back into the US dollar.

AUD/USD Price Forecast Video 19.05.22

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This article was originally posted on FX Empire

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