AUD/USD Weekly Price Forecast – Australian Dollar Plummets

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has plummeted during the course of the trading week, to finally break through the 0.68 level. This is an area that has been important more than once, so it’s interesting to see that we finally got through it. At this point, it’s very likely that the Australian dollar will fall from here, maybe reaching the 0.66 level next, followed by the 0.65 level. The Australian dollar being so highly levered commodities should not be a surprise to traders being weak, because quite frankly there’s no reason to think that people will be willing to take a lot of risk at the moment. Ultimately, I do think that the Australian dollar plunges much lower from here, and that rallies are an opportunity to pick up “cheap US dollars.”

The 0.70 level is now the “ceiling” in the market, assuming that we can even get there. I think that anytime this market rallies, there will be plenty of people willing to step on it, and therefore I will be doing the same. With that being the case, I think that we get a situation where you have to be willing to fade rallies going forward, and perhaps even add on to positions that are working out to the downside. If we were to take out the 0.70 level, it would be rather impressive, but we would probably need help from the Federal Reserve or something to that extent in order to see that play out. Ultimately, I believe this is a market that continues to drop from here, and has no real shot at recovery until something changes from a macroeconomic standpoint.

AUD/USD Price Forecast Video 04.07.22

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This article was originally posted on FX Empire

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