The FX PostThe FX Post
    What's Hot

    FlatQube Trade Volume, Trade Pairs & Trust Score

    November 7, 2022

    Step Guide to Winning Forex Trading

    September 19, 2022

    Relationship Between Currency Risk and Foreign Bonds

    September 2, 2022
    The FX Post The FX Post
    • Best Fx Robots
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Top
      • Best Forex Robots
    The FX PostThe FX Post
    Home » AUD/USD Analysis: Bears Emerge Before 0.7550 as Greenback Firms Up
    Forex Forex Forecasts Updated:May 23, 2022

    AUD/USD Analysis: Bears Emerge Before 0.7550 as Greenback Firms Up

    March 25, 20223 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    In the first half of the European session on Friday, March 25, the AUD/USD fell below 0.7500 or a fresh daily low below its yearly high.

    • AUD/US experienced a modest pullback intraday from a new year high earlier this week.
    • Moreover, the Fed’s dovish outlook and higher US bond yields were headwinds for the US dollar.
    • The Australian dollar continued to be supported by rising commodity prices, limiting further losses.

    AUD/USD fundamental analysis: Fed hawks and soaring yields to weigh

    After posting modest intraday gains on Friday, the pair posted a modest pullback from its high reached in early November 2021 near 0.7535. Some of the drops may be attributed to buying around the US dollar, which continued to be bolstered by the Fed’s dovish outlook.

    FOMC’s next rate hikes

    As a result, Fed Chair Jerome Powell and other influential members of the FOMC have left the door open for higher borrowing costs to bring inflation down. At the May meeting, investing markets cheered a 50 basis point rate hike, pushing yields on benchmark 10-year US Treasurys closer to a 22-month high.

    Rising WTI prices

    Additionally, fears that rising crude oil prices will continue to push consumer prices higher continue to support high US Treasury yields. Consequently, the dollar strengthened against the AUD/USD, and the AUD/USD experienced some profit-taking, especially after a rally of more than 350 points from the monthly low.

    Despite rising commodity prices that continue to support the resource-pegged Australian dollar, there is limited downside. Therefore, we recommend waiting for any significant follow-up selling before confirming. The AUD/USD has topped in the near term and preparing for a significant correction.

    What’s next to watch?

    However, the AUD/USD pair has seen gains for the second consecutive week. Next week, a revised Michigan Consumer Sentiment Index and upcoming data on home sales will be released in the US economic report. Combined with US bond yields, this will impact dollar momentum and provide some lift.

    AUD/USD price technical analysis: иears start emerging

    The AUD/USD price hit the top just below the 0.7550 area and started declining. On the 4-hour chart, we can see a bearish engulfing candle. This is a sign of bearish trend reversal that may trigger later on Friday or next week. We may find stiff support around the 0.7500 handles in a bearish reversal. If the level breaks, the price may further losses towards 0.7450 and 0.7400. On the flip side, if the new high of 0.7540 is broken, the pair may head towards the 0.7600 area. 

    AUD/USD 4-hour chart
    AUD/USD 4-hour chart

    The moving averages on the 4-hour chart are still far below the prices. It shows that the pair is still holding a bullish bias. As long as the price is above the 20-period SMA, we will keep our bias towards the upside, and the pullback will only be a minor correction. The MACD indicator has shown a weak sign of bearish reversal. 

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more
    analysis AUD/USD Analysis financial analytics
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    JPMorgan Chase & Co

    JPMorgan Strategists See Equity Stress Relieving in Second Fifty Percent

    June 21, 2022
    US Fed Hikes Benchmark Interest Rate

    US Fed Hikes Benchmark Interest Rate by 0.75% to 1.75%, Highest Level since March 2020

    June 16, 2022
    European Shares

    European Shares Edged Up Before Fed Rate Hike as ECB Explores Crisis Strategy

    June 15, 2022
    US Inflation Jumps

    US Inflation Jumps to Hit Fresh 40-Year Record-High of 8.6%

    June 10, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    23  −    =  18

    Best FX Post
    Best Forex Robots (Expert Advisors) 2021

    Best Forex Robots (Expert Advisors) 2022: Passive Income From Algo Trading Systems

    July 7, 2021

    Top 10 Lending Platforms for Crypto Loans

    June 1, 2022
    forex eurusd trading charts

    Top 10 Best Forex Brokers In All Times

    June 1, 2022
    Recent Posts
    • FlatQube Trade Volume, Trade Pairs & Trust Score
    • Step Guide to Winning Forex Trading
    • Relationship Between Currency Risk and Foreign Bonds
    • Best Social & Copy Trading Platforms
    • Bitcoin Dips Listed Below $20,000 With Fundstrat Considering ‘Last Washout’
    Featured Reviews
    TechBerry

    TechBerry Review: Pros, Cons, Recommendations

    September 18, 2021
    CryptoHero

    CryptoHero Review: Pros, Cons, Recommendations

    June 3, 2022
    Bitsgap

    Bitsgap Review: Pros, Cons, Recommendations

    April 29, 2022
    Categories
    • Analysis
    • Automated Trading
    • Best FX Post
    • Broker Reviews
    • Commodities
    • Copy Trading
    • Crypto
    • Crypto 101
    • Crypto Bots
    • Crypto Forecasts
    • Crypto Reviews
    • Forex
    • Forex 101
    • Forex Forecasts
    • Forex Robots
    • Forex Signals
    • Guides
    • Indices
    • News
    • News
    • News
    • Reviews
    • Reviews
    • Uncategorized
    Twitter BlogLovin
    © 2023, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.