AUD/USD Price Forecast – Australian Dollar Continues to Consolidate

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Wednesday as we continue to see a lot of noisy behavior. Ultimately, this is a situation that the Federal Reserve will take front and center on, due to the fact that the world is trying to front run whatever it is the Federal Reserve is going to do going forward. Quite frankly, I believe that a lot of people are going to be concerned that tightening is coming, and that of course will cause a lot of problems with risk appetite.

Inflation is raging, so it’s difficult to imagine a situation where the Federal Reserve is going to be loosening its monetary policy. In fact, I think even pausing is probably a bit of a problem, so even if we do get some type of rally, it will be short-lived due to the fact that people will have to think about what it is that Jerome Powell flubbed, because he’s the master of doing that during question and answer sessions.

The 50-Day EMA is closer to the 0.65 level, which is an area where we should see plenty of resistance barrier memory, therefore I think there will be plenty of sellers. Ultimately, I don’t even think we get there, but if we do that’s an area where I would be very interested in shorting this market. If we break down through the bottom of the last couple of candlesticks, then it’s likely that we drop down to the 0.62 level, which of course is an area that is massive in its implications, and where we had bounced from previously.

AUD/USD Price Forecast Video for 03.11.22

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