AUD/USD Price Forecast – Australian Dollar Breaks Through Another Level

The Australian dollar has fallen a bit during the course of the trading session on Thursday to reach down below the 0.73 level, and by extension the 61.8% Fibonacci retracement level. That being said, the market looks as if it is going to try to test this area of support, and perhaps causing a little bit of a short-term bounce. That being said, the market is most certainly bearish and of course we are seen a lot of bullish pressure for the US dollar overall. In fact, the US Dollar Index has broken above the 94.50 level, and therefore it is likely that we will continue to see longer-term US dollar strength.

AUD/USD Video 12.11.21

Any bounce at this point in time will more than likely struggle at the 0.74 level, which is where the 50 day EMA sits and is starting to slump lower. Bounces in general should be sold into, unless of course we break above the 200 day EMA, it is going to be a very negative looking market in general. All things being equal, I think that the Australian dollar is going to struggle due to the Chinese issues, and of course the fact that interest rates in the United States are spiking, which should continue to help with the greenback overall.

Australia is still a bit of a mess, and the Reserve Bank of Australia was a bit more dovish than people had anticipated, which is a bit of negativity that seems to be sticking to this currency. There is a cluster of support just below the 0.73 level, so do not be surprised to see it struggle to continue the overall downtrend in the short term.

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