AUD/USD Price Forecast – Australian Dollar Rolls Over

The Australian dollar gapped lower to kick off the trading session on Monday, turned around to fill that gap, but then fell to show signs of weakness again. The Australian dollar has been on its back foot for a while, so it makes sense that eventually the buyers may give up. The question now is whether or not we can break down to a fresh, new low, and then continue to go lower. If it does break down like that it is likely that the market could go down to the 0.71 level, possibly even the 0.70 level.

AUD/USD Video 29.06.21

To the upside, if we were to break out above the 0.7633 level, then we could reenter the previous consolidation area, perhaps reaching towards the 0.78 level. We have been showing signs of exhaustion for a while now, and this looks as if it is the “next leg lower.” At this point, if we get some type of “risk off attitude”, that could break this market apart. The Aussie of course is highly sensitive to the commodity’s markets, so if for some reason they start to get hit, that could also put negative pressure on this pair.

Beyond that, Australia has just locked down Sydney again, and therefore it is likely that the Australian dollar might reflect that as well. Quite frankly, there is a lot going on right now and it is difficult to get overly extended in risk currencies as it seems like there is a high probability that headlines will continue to cause problems going forward in this market.

For a look at all of today’s economic events, check out our economic calendar.