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AUD/USD Price Forecast – Australian Dollar Threatens Downside Again

By:
Christopher Lewis
Published: Nov 23, 2021, 14:33 UTC

The Australian dollar has gone back and forth during the trading session on Tuesday, breaking below the bottom of the inverted hammer from the Monday session. That being said, it looks now like we are trying to figure out whether or not we have enough momentum to continue falling.

AUD/USD Price Forecast – Australian Dollar Threatens Downside Again

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The Australian dollar has gone back and forth during the course of the session on Tuesday, breaking down below the bottom of the inverted hammer, and threatening the 0.72 level. If we can break down below the 0.72 level, the market will then go much lower, perhaps reaching towards the 0.70 level. Any rally at this point in time will continue to see a line of selling pressure from what I can see, especially near the 0.73 level where we have already failed a couple of times.

AUD/USD Video 24.11.21

Keep in mind that the Aussie is highly influenced by the Chinese mainland economy, and of course the economics of whether or not commodities are going to continue to be in high demand. The Reserve Bank of Australia has recently been very dovish, and therefore it is likely that we will continue to see the Aussie punished. Ultimately, this is a market that looks as if it is ready to continue going much lower, as the risk appetite continues to fail. With that being the case, the US dollar continues to be very strong in general, and therefore it makes quite a bit of sense that we would see downward pressure.

The 50 day EMA above is sloping lower and falling, so it does suggest that we are going to continue to see intermediate pressure to the downside as well. I have no interest in buying this pair, at least not anytime soon. We will have to wait and see whether or not things can turn around, but right now they do not very likely to.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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