AUD/USD Weekly Forecast – Australian Dollar Gets Hammered for the Week
AUD/USD Forecast Video for 29.05.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has fallen hard during the week, slicing through the 0.66 level. The 0.66 level was the bottom of a larger consolidation area we had been in for a while, measuring 200 points. As we break down below, the measured move is for the Australian dollar to reach the 0.64 level. Short-term rallies at this point in time will continue to be selling opportunities, and of course, the Australian dollar will continue to suffer at the hands of a lack of risk appetite. Remember that the US dollar continues to attract a lot of inflows where people are concerned, and there are plenty of reasons to be concerned going forward.
Ultimately, the Australian dollar is highly sensitive to the risk appetite around the world, and the US dollar is quite often sought out as a safety currency. Furthermore, traders are starting to bet that the Federal Reserve is going to have to tighten further, at least more than they once were, so that has driven some money back into the greenback. Overall, a certain lack of risk appetite out there and a lot of concerns when it comes to China will continue to weigh upon the Aussie going forward, so I do think that gravity is finally taking its toll.
That being said, I think longer-term traders are probably going to benefit from looking at shorter-term charts for entry signals, but it’s clear that the overall trajectory is lower, I think that continues to be the case going forward as inflation in the United States continues to be strong, and therefore the Federal Reserve will remain very tight going forward. If that’s the case, US dollar strength will overwhelm.
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