AUD/USD Weekly Price Forecast – Australian Dollar Continues to Look Very Weak

The Australian dollar has failed a bit during the course of the week, as we could not break above the 0.75 handle. That being said, the market is going to be interesting to pay attention to as Australia continues to lock itself down. The lockdown has spread from Sydney to Melbourne, and the way the Australians are going they will find an excuse to lock down the rest of the country given enough time. At this point, I think the Australian dollar is primed to drop down to the 0.70 level, especially if we can break down below the 0.74 level.

AUD/USD Video 19.07.21

If we break down below there, I suspect that the momentum will pick up to the downside, and it will probably be more or less a risk event type of situation. It certainly looks as if the US dollar is picking up momentum, as the US Dollar Index continues to threaten a breakout to the upside. It will be interesting to see how this plays out, because we are currently knocking on the door of a breakdown, and not only would I continue to be short of the Aussie dollar at that point, but I would be looking for opportunities to continue to add to this position.

If you look at the price action of the Australian dollar over the last several months, you can see clearly it has not quite acted bullish, so this move should not be a huge surprise at this point in time. While so many people were screaming about the US dollar falling drastically, it appears the smart money has been picking it up.

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