AUD/USD Price Forecast – The Australian Dollar Collapses

Australian Dollar vs US Dollar Technical Analysis

The Aussie has fallen apart during the trading session on Wednesday, as we continue to see a lot of negativity in this market. It’s interesting to watch how this play out because, until the last couple of days, the Australian dollar was outperforming other currencies vis-à-vis the US dollar. Because of this, the market is likely to see a bit of catching up, meaning that the Aussie could come unraveled.

Keep in mind that the Australian dollars are highly levered to the Chinese economy, which has a lot of issues at the moment, and it certainly makes quite a bit of sense that we would see this market selloff. Ultimately, I think that this is a market that probably has much further to drive, maybe down to the 0.67 level. The turnaround at the 200-Day EMA has been quite stunning, so I think that at this point we have to look at short-term rallies as a potential selling opportunity. Furthermore, the United States dollar continues to be the most important currency in the world and the most highly sought-after asset.

If we break down below the 0.67 level, that opens up a massive selloff. I don’t know that we have that happen anytime soon, but for me, it is clear that this market has further to go to the downside. I would not be a buyer of the Aussie until we clear the 200 Day EMA on a daily close at this point, which is something that would take quite a bit of work to make happen again. Expect volatility and keep your position size reasonable as a result. With this, the downtrend looks as if it is still very much in play.

AUD/USD Price Forecast Video for 18.08.22

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