AUD/USD Price Forecast – Australian Dollar Continues to Break Down

The Australian dollar has broken down a bit during the course of the trading session on Wednesday as we have pierced the 0.72 handle. Because of this, it looks like we are going to continue going lower, which makes a certain amount of sense as the Federal Reserve continues to go looking to tighten its monetary policy. Looking at this chart, I believe that the 0.71 level would be a potential target, but quite frankly I believe that the longer-term outlook is probably for a move down to the 0.70 level. The market will continue to favor the greenback overall from what I can see, and of course the other thing to pay attention to is that the Reserve Bank of Australia is likely to see reasons to keep monetary policy very loose.

AUD/USD Video 25.11.21

With that being the case, it does make sense that we continue to break down and it is worth noting that the US dollar is strengthening against almost everything, so the Australian dollar falling is probably not that surprising. All things been equal, the 50 day EMA is starting to slope lower, so it certainly suggests that we are ready to go much lower. If we were to take out the 0.7350 level, then it is possible that we could see the market turn around, but right now I just do not see any signs of momentum at all, due to the fact that we gave back gains over the last couple of days, showing that we simply cannot seem to pick this market up off of the floor. Thanksgiving is tomorrow, so keep in mind that during North American trading it will probably be very quiet.

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