AUD/USD Price Forecast – Australian Dollar Gives Up Early Gains
The Australian dollar has tried to rally initially during the trading session on Thursday but gave back gains to show signs of further weakness. At this point, we are below the 0.72 level, and threatening yet another structural bounce. If we break down through here, then we could go much lower. That being said, the market is likely to see a lot of attempts to recover, because quite frankly at this point the Australian dollar is extraordinarily oversold. That does not mean we cannot go lower, just that I do not know that I would get short right now.
AUD/USD Video 26.11.21
If you want to jump on this trend, what you desperately need to see is some type of rally that you can take advantage of. The US dollar is without a doubt the strongest currency out there, so now I am looking for opportunities to buy it against multiple currencies, not just the Australian dollar. I think given enough time this is a market that should probably break towards the 0.70 level, but it is obvious that a bounce is desperately needed to keep the momentum up. Because of this, I am looking at the 0.73 level as a potential selling opportunity, assuming that we get that bounce.
If you are already short of this market, there really is not much to do, as the trend has broken down so significantly. It is just a matter of moving your stop losses up, locking in a certain amount of profit at this point. Regardless, I would not be a buyer anytime soon, because it is akin to “catching a falling knife.”
For a look at all of today’s economic events, check out our economic calendar.