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AUD/USD Weekly Price Forecast – The Australian Dollar Finds Buyers at the Lows

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Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar fell significantly during the week to break down to the 0.6850 level before turning around. By doing so, the market has formed a bit of a hammer, but it still looks like a very soft market to me. I think rallies at this point will continue to attract sellers, and you are starting to see that on the Friday session. If we can break above the top of the candlestick, then we may have a little bit more of a relief rally ahead of us.

Having said that, the Federal Reserve has reiterated during the week that we are going to continue to see hawkish behavior, and therefore it makes sense that the US dollar will continue to strengthen. If we break down below the low price of the week, it’s very likely that we can look to the 0.68 level, and then 0.66 level. Ultimately, this is a market that will continue to move back and forth with more of a downward tilt, so I still like the idea of shorting. The Australian dollar is highly levered to China which is continuing to lock itself down, and of course highly levered to commodities which are all over the place.

Looking at this chart, if we do break down from here, it’s very likely that it will accelerate the selling. If we break above the 0.7250 level, then we can make a significant attempt to recover, but unless the Federal Reserve pivots on its hawkish stance, I just don’t see how that happens for any type of significant move.

AUD/USD Price Forecast Video 20.06.22

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This article was originally posted on FX Empire

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