Yahoo Finance AUD/USD Weekly Price Forecast – Australian Dollar Drops Hard For The Week
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially tried to rally during the course of the week but banged up against the top of the overall range and fell precipitously. A lot of this had to do with the hotter than anticipated inflation numbers coming out of the United States, thereby kicking the idea of the Federal Reserve cutting rates down the road even further.
This, of course, had a negative effect on anything that wasn’t the U.S. dollar. So not a huge surprise to see how this played out. Give it enough time, I do think that we will have to reconcile the 0.6450 support level. And if we were to break down below there, I think at that point you would pretty much have a significant massive sell off that probably opens out the door down to a 0.63 level.
If we turn around a rally from here, then it would just be more of the same consolidation that we have seen in the 200 point range, which wouldn’t be a huge surprise either. One of the things that you need to pay attention to is the fact that the euro has broken down pretty significantly against the greenback, and as the greenback trades against the euro, that’s generally how it trades against other currencies around the world.
With that being said, I think you’ve got a situation where you have to watch the 0.6450 level very closely. Furthermore, geopolitical issues, global slowdown, global inflation are all coming in to punish the Aussie and benefit the greenback, which is starting to swallow almost everything.
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This article was originally posted on FX Empire
