AUD/USD Price Forecast – Australian Dollar Gets Hammered

The Australian dollar has broken down significantly during the course of the trading session on Thursday as we pierced the 0.7150 level. That being said, the market is likely to continue to go lower, reaching down towards the 0.71 handle, possibly even lower than that. It is obvious that the Australian dollar has struggled to continue going higher, as the 0.7275 has been like a brick wall for this market, and we are finally pulled back from it. Whether or not we can turn around and attempt to break above there is a completely different question, but clearly the session on Thursday has given something to think about.

AUD/USD Video 07.01.22

If we break down below the lows of the Thursday session, I anticipate that the Aussie will go even lower, and continue the overall downtrend that we have been in. While we had a nice pullback, it is also worth noting that the 50 day EMA was right there as well, so it does make a certain amount of sense that we would see selling pressure.

The US dollar has been strengthening against most currencies, so this should not be a huge surprise, especially as the Australian dollar is highly levered to China and certain commodities. At this point in time, I think any time we rally a bit it is more than likely going to be a selling opportunity. If we did somehow break above the 0.7275 handle, that would be extraordinarily bullish, but we at best are several days away from even attempting that scenario. We are getting ready to drop, from everything that I see on the chart and therefore I am position for a drop in this pair.

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