This is a market that I think continues to show negativity, so I like the idea of shorting signs of exhaustion if we get those.

• The AUD/USD currency pair fell significantly Friday as interest rates in America started to spike again.
• The jobs number came out much hotter than anticipated, so people are starting to assume that the Federal Reserve will have to continue to be very tight.
• After all, the Federal Reserve has been trying to tell everybody over the past week that they are nowhere near pivoting, and the US dollar shrinking was a bit of a stretch.

Technical Analysis

At this point, the market is threatening to 0.69 level, which is an area that I think a lot of people pay close attention to. We did pierce that level at one point, but then turned around to rally and break above it. This does not suggest to me that the market is ready to turn around for a bigger move, just that we are struggling a bit at this point. If we can break down below the bottom of the candlestick, then I think that it’s likely that the Aussie will go looking to the 0.68 level. After that, we could open up a move down to the 0.67 level. If we were to break down below the 0.67 level, then that would be a major turnaround in the market, and perhaps open up a rush of selling.

On the other hand, if we were to rally at this point, the 50-day EMA just above is going to cause a little bit of technical resistance, and then possibly the 0.70 level. The 0.70 level is a major area of noise all the way to the 0.7050 level. If we were to break above the 0.7050 level, then it’s possible that we could go much higher. If we break above there, then we would be looking at a potential move to the 200-day EMA.

This is a market that I think continues to show negativity, so I like the idea of shorting signs of exhaustion if we get those. At this point in time, it’s likely that we will see the US dollar strengthen given enough time. However, I think it continues to be very noisy to say the least, so it’s likely that we will have plenty of short-term selling opportunities in what is going to be a longer-term move.

Ready to trade our daily Forex analysis? We’ve made a list of the best brokers to trade Forex worth using.

We expect the stock’s decline to return during its upcoming trading.

The Dow Jones Industrial Average rose during its recent trading at the intraday levels, to achieve gains in its last sessions, by 2.15%, to gain about 641.47 points. It settled at the end of trading at the level of 30,530.26, after declining in Friday’s trading by -0.13%.

US stocks bounced back from last week’s selling, with government bond yields rising as risk-off sentiment subsided on Tuesday, with all sectors posting gains led by energy, consumer appreciation and consumer goods.

St. Louis Fed President James Bullard warned that inflation expectations could become unchecked without credible action by the Federal Reserve, a credible action by the US Federal Reserve, which could lead to a new regime of high inflation and volatile real economic performance.”

On Tuesday, Richmond Fed President Thomas Barkin called Fed Chair Jerome Powell’s guidance that the US central bank will likely raise interest rates by 50 or 75 basis points in July as “reasonable.”

In other economic news, the pace of US existing home sales fell 3.4% to 5.41 million at a seasonally adjusted annual rate in May, data from the National Association of Realtors showed on Tuesday. The expected drop was 5.4 million in a Bloomberg poll. After four consecutive declines, sales were the lowest since June 2020 and were down 8.6% from the previous year.

Technically, the index is trying to compensate for part of what it incurred from previous losses. At the same time it is trying to drain some of its clear oversold by the relative strength indicators, especially with the emergence of a positive crossover in them. All of this comes in light of the control of the short-term bearish corrective trend along a slope line, as it is shown in the attached chart for a period of time (daily). This is with the continuation of the negative pressure of its trading below the simple moving average for the previous 50 days.

Therefore, we expect the stock’s decline to return during its upcoming trading, especially throughout its stability below the resistance level 31,000, to target the support level 28,658.