AUD/USD Price Forecast – Australian Dollar Falls in Risk Off Move

The Australian dollar has fallen a bit during the trading session on Friday, as we see a little bit more of a “risk off” attitude around the world. That being said, the market is likely to go looking towards the 0.71 handle, possibly even down towards the 0.70 level after that. All things been equal, this is a market that is going to be sensitive to risk appetite, and it certainly looks as if it is going to struggle to pick itself up off the floor.

AUD/USD Video 20.12.21

It is worth noting that the Thursday candlestick was a massive shooting star, so that does suggest that we are going to see a lot of selling pressure. After all, the market tried to break out but fell apart almost immediately. This is a very interesting pattern, because if we break down below the lows of the Thursday session, it is likely that we could go to the downside. At that point, I think we are going to see an acceleration. On the other hand, if we were to turn around a break above the 50 day EMA, then the market is likely to go towards the 0.73 level next.

Keep in mind that this is highly sensitive to risk appetite and therefore you need to pay attention to commodities, stock markets, and the like. The US dollar gets bought in times of fear, and the Australian dollar of course is highly correlated to the mainland Chinese economy, and of course commodities such as copper and gold. In general, this is a market that I think continues to see a lot of volatility, but it is clear that the buyers have taken a bit of a hit.

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