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AUD/USD Weekly Price Forecast – Australian Dollar Breaks Through a Major Support Level

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·2-min read
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Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has broken significantly below the 0.70 level to show just how weak the currency is. The US dollar is like a wrecking ball for almost everything out there, and the fact that we formed an inverted hammer for the previous week suggests that we were always going to fall. Rallies at this point will more likely than not be sold into, based on what we have seen over the last several weeks. The 0.70 level should be a bit of a barrier that is going to be difficult to get above. However, if we were to break above there, then there should be plenty of sellers just waiting to get involved.

On the other hand, if we break down below the 0.68 level, then we could drop rather significantly at that point to go down to the 0.65 handle. The 0.65 handle is an area that is very important from a longer-term standpoint, and of course, it is a large, round, psychologically significant figure. The Australian dollar is highly correlated to commodities, so do not be surprised at all to see this market get hammered as there are a lot of concerns about global growth now. If the global economy is going to slow down, the Australian dollar will be one of the first places that will run from.

All things being equal, this is a market that I will be looking to fade and have no interest in buying until we break above the top of the inverted hammer from the previous week. Looking at this chart, nothing looks positive.

AUD/USD Price Forecast Video 16.05.22

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This article was originally posted on FX Empire

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