The Australian dollar continues to look threatened


Weekly technical analysis of the Australian dollar against the US dollar

The Australian dollar initially rallied during the trading week, but then turned to show signs of hesitation at the crucial 0.75 level. We have passed the low of the previous week’s Shooting Star, suggesting that we may be falling quite steeply. The market saw the 0.75 level as a major resistance zone, and it continues to be the same song and dance at this point.

At the bottom of the overall consolidation zone is the 0.70 level, and that could be the target given enough time. This of course has a lot to do with the strengthening US dollar in general and a potential problem in commodity markets. After all, the Australian dollar is heavily influenced by commodities, so it’s hard to imagine a situation where we have much strength in the Australian dollar.

At this point, the 50-week EMA could be targeted, as could the 200-week EMA which is around the same level. That would be near the 0.7350 level. Breaking through this area, the market could fall at this point. In fact, I don’t see a buying opportunity until we break past the previous week’s Shooting Star top. This would obviously take a major shift in overall attitude and momentum to happen, so I’m not holding my breath for that to happen anytime soon. With that, it looks like we’re continuing the global back and forth.

AUD/USD price prediction video 18.04.22

For an overview of all of today’s economic events, check out our economic calendar.

Previous Wells Fargo announces lower home loans and new aid for minority borrowers
Next VEC asks teacher laid off during pandemic to repay $7,000