AUD/USD Price Forecast – The Australian Dollar Recovers on Wednesday

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially fell during the trading session on Wednesday but then turned around to recapture the 0.69 level. At this point, the question isn’t so much whether or not the market will go higher or lower, but just how volatile the pair will become. The massive candlestick from the Tuesday session certainly suggests that we could have quite a bit of negativity coming down the road. If we were to break below the bottom of the range for the trading session on Wednesday, the market opens up the possibility of dropping down to the 0.67 level.

The 50 Day EMA is sitting right around the middle of the range suggests that perhaps the market is simply going to go back and forth as we are essentially grinding away and trying to figure out what the bigger direction will be next. Ultimately, I think that if we break above the 0.7050 level, then the Australian dollar has further to go. On the other hand, if we break down below the bottom of the candlestick or the Wednesday session, then we have a continuation of the overall downtrend.

Keep in mind that the Australian dollar is highly levered to the commodity markets, so you will need to pay close attention to how things behave in other markets because it can give you an idea as to where we are getting ready to go for the next bigger move. The market will continue to be very noisy because there are so many different moving pieces around the world. Because of this, watch the consolidation area, and make your move after we leave it.

AUD/USD Price Forecast Video for 04.08.22

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