AUD/USD Price Forecast – Australian Dollar Finally Breaking Down

The Australian dollar has fallen a bit during the course of the trading session on Tuesday as we continue to see lockdowns in Australia weighing upon the economy. At this point, the Australians are looking to destroy their own economy, and the market will of course reward them for their efforts. Furthermore, there is a lot of concern about China locking itself down, and perhaps the underreporting of cases on the mainland. All of this comes back to further negativity in this market, so I do think that it is only a matter of time before we drop from here and continue going lower.

AUD/USD Video 18.08.21

I have been saying for a while that I believe that the Aussie was going to try to break down significantly and go looking towards the 0.70 level, and it looks as if that move is finally starting to kick off. The 0.70 level underneath is a massive amount of support just waiting to happen, just as the 0.74 level above had been significant resistance previously. That being said, I would expect a lot of volatility, but at the end of the day I think this is a market that will eventually find sellers going forward. I have no interest in buying the Aussie dollar, and I believe that every time we rally, there will be sellers at the first signs of exhaustion.

You could make an argument for a little bit of a bullish flag breaking down, which also measures for a move towards the 0.70 level underneath. With that being the case, I think it is only a matter of time before the market sinks even further.

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