AUD/USD Price Forecast – Australian Dollar Continues to Look Threatened

The Australian dollar initially tried to rally during the course of the trading session on Tuesday but has given back some of the gains to break back down below the 0.75 handle. At this point, it looks likely that we will continue to see downward pressure. After all, we had recently had a bit of a bounce, but it is a bit of a “dead cat bounce” after the massive selloff. The Aussie certainly looks as if it is going to be pressured, and it makes quite a bit of sense considering that Sydney has just reentered a lockdown, which of course is a very negative turn of events for the local economy.

AUD/USD Video 01.07.21

If we break down below the most recent low, it is very likely that we could go looking towards the 0.70 level, as there might be a little bit of a “air pocket” underneath there. Rallies at this point are not to be trusted until we break above the 0.7650 level on a daily close, which could open up the possibility of a move towards the 0.7750 level.

Nonetheless, this is a market that certainly is being threatened overall, as the most recent action has been so poor. Nonetheless, the 0.75 level could be a bit supportive, but giving that up would be a continuation of what we have seen over the last several months, where the Aussie simply cannot break above resistance, and now it looks like it is running out of steam in general. Furthermore, the US dollar has been strengthening against multiple currencies, so it does make quite a bit of sense that we continue to struggle here.

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