AUD/USD Weekly Forecast – Australian Dollar Plunges

AUD/USD Forecast Video for 26.06.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has plunged during the course of the week as we continue to worry about the overall growth of the global economy. All things being equal, this is a market that I think will continue to move back and forth with the idea of whether or not we can strengthen economically. The 0.66 level being broken to the downside opens up the possibility of a move down to the 0.65 level, and then eventually the 0.64 level.

Looking at the weekly chart and most certainly the daily chart, you can see just how crazy the volatility has become, therefore I don’t have any interest in trying to get too cute with this market. We are still very much in a downtrend, but it’s also worth noting the recent reversal due to the Reserve Bank of Australia doing a surprise interest rate hike, shocking the market to say the least.

With this, I think it’s probably only a matter of time before the market turns things back around, and if Jerome Powell continues to be very hawkish, that obviously could be a major influence. However, I think the only thing you can count on at this point in time is going to be a lot of noisy behavior, so be aware of that and understand the fact that we have a lot of confusion out there and it’s difficult to imagine a scenario where longer-term traders are going to have an easy go at this. It is because of this that I look at this more or less from a consolidation range on the daily chart.

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