AUD/USD Price Forecast – Australian Dollar Gives Up Early Gains Again

The Australian dollar initially rallied during the trading session on Wednesday but gave back early gains in order to show signs of weakness again. As we continue testing the 0.72 area if we break down below there it would of course be a significant turn of events as the Australian dollar has been so hesitant to break down. The US dollar has been strengthening overall, not only here but in other pairs so one would have to think that it is probably only a matter of time before the Aussie falls as well. Quite frankly, it has been a bit surprising at just how resilient this pair has been.

AUD/USD Video 30.09.21

To the upside, the 0.73 level continues to be very important, and as long as we stay underneath there it is difficult to imagine a scenario where I would be a buyer of the Australian dollar. Quite frankly, I think it is probably only a matter of time before we go down to the 0.71 handle, and then down to the 0.70 level. The trend has been very bearish, but the last couple of weeks have been a bit noisy.

Given enough time though, I fully anticipate that this market does break down quite a bit, offering the possibility of building up a position once we finally break the aforementioned 0.73 handle. At this point, I just do not see a scenario in which you should be a buyer of this pair, because quite frankly the US dollar is without a doubt the strongest currency out of all of the majors right now.

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