AUD/USD Price Forecast – Australian Dollar Trying to Stabilize

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar and the US dollar have been all over the place during the last 24 hours, as we have seen the markets try to wrestle with the idea of inflation, a lack of global growth, and of course the fact that the Federal Reserve is looking to tighten monetary policy quite drastically. Ultimately, any rally at this point will be looked at with suspicion, as we have seen such a shift in the overall attitude of not only this currency pair but multiple other ones.

At this point, the US dollar is by far the strongest currency in the Forex world with the exception of the Russian ruble and the Brazilian real. That being the case, the market is more likely than not going to favor the greenback in times of fear, which is what we are going through now. All things being equal, it is likely the market will continue to be very noisy, but I do not have any interest whatsoever in trying to buy the Australian dollar until we can break above the 0.72 level.

On the downside, I believe that the 0.68 level could be supported, so we will need to keep an eye on that, but I think eventually we could break down through it. This is especially true if we continue to see so many disastrous headlines coming out when it comes to economic numbers. Ultimately, I do think that it is probably only a matter of time before we have to make some type of a bigger decision, and it certainly seems at the moment that it is more of a “fade the rally” type of situation.

AUD/USD Price Forecast Video 11.05.22

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