AUD/USD Price Forecast – Australian Dollar Continues to Plummet

The Australian dollar has broken down a bit during the course of the trading session on Thursday as we continue to see quite a bit of selling of risk assets. With the Australian economy being locked down occasionally, that of course is going to do nothing good for the Aussie dollar itself. But I believe that this is a market that will continue to see drifting lower, perhaps reaching towards the 0.70 level underneath. The 0.70 level is a region that I think a lot of people will be paying close attention to as it is a large, round, psychologically significant figure.

AUD/USD Video 20.08.21

Rallies at this point in time could continue to be selling opportunities, especially as the 0.73 level above will offer significant resistance. We recently formed the so-called “death cross”, and therefore a lot of negative sentiment is most certainly out there. Keep in mind that the US dollar continues to attract a lot of attention against most currencies, including this one. At this point in time, the market is likely to continue going lower based upon the fact that the Chinese mainland numbers of course have been less than desirable, and Australia is a proxy for China when it comes to the currency markets.

This is a continuation of lockdowns not only in Australia, but also on the mainland. Ultimately, this is a market that you cannot be a buyer of, at least not anytime soon. There is the possibility that the 0.70 level might be the “bottom of the market”, but first we need to get down to that level in order to test out that region.

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