AUD/USD Price Forecast – Australian Dollar Plunges Again

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen again during trading on Thursday, as we continue to see a lot of downward pressure, as the US dollar has been like a wrecking ball against almost everything. At this point, it looks as if the Aussie dollar is likely to go looking to reach the 0.62 level. That scenario we bounce from previously, so it does make a certain amount of sense that we would see the market retest that area.

If we break down below the 0.60 level, then it’s likely that this market will break down quite significantly, perhaps reaching down to the 0.60 level. Over the longer term, that seems to be very difficult to get to, but as long as the Federal Reserve is going to remain tight with its monetary policy, it is still a very real possibility. In the meantime, we may get the occasional short-term bounce, but that balance should end up being a nice selling opportunity, just as the last one was.

After all, while the Federal Reserve is extremely tight with its monetary policy, the Reserve Bank of Australia has recently blinked, as there is a huge amount of concern when it comes down to the Australian housing market, which of course has been in a bubble for years. Remember, during the Great Financial Crisis, Australia avoided almost all of the ill effects. Australia also has to worry about Asia, and was going on in the Chinese mainland, so it is very possible that we go looking to the US dollar for safety as well. Fading rallies on signs of exhaustion should continue to be the play that most people look at.

AUD/USD Price Forecast Video for 04.11.22

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