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AUD/USD Price Forecast – The Australian Dollar Has Fallen Into The Weekend

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·2 min read
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Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen significantly during the trading session on Friday, as we are heading into the weekend. This shows that traders are not willing to hang on to a riskier currency, which should not be a huge surprise. There is a bit of a “double bottom” underneath at the 0.6850 level, as we had recently bounced from there. If we break through that level, it would be a very negative sign and could send the Aussie dollar much lower.

With the interest rates in America rising, it makes a lot of sense that the greenback will continue to be favored. Ultimately, I believe that this is a market that remains “all on the rallies”, but quite frankly we did not get overextended at this point. This shows just how weak the buyers of this currency are, and it certainly looks as if we are chipping away at a major support level. In fact, I don’t have a scenario in which I want to get long in this market, at least not until we break above the 50 Day EMA. I don’t see that being likely, at least not in the short term.

Keep in mind that Australia is highly levered to commodities, and commodities are being thrown around at the moment. Furthermore, the Chinese are locking bits and pieces of their economy down again, and that will have a negative influence on the Aussie economy. After all, China is Australia’s biggest customer, and therefore it has a bit of a knock-on effect over here. The market should offer plenty of short-term opportunities for those that are looking for exhaustion.

AUD/USD Price Forecast Video 20.06.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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