AUD/USD Weekly Price Forecast – Australian Dollar Crashing Towards Long-Term Trend Line

The Australian dollar has initially tried to rally during the course of the week but gave back gains to show signs of weakness. Because of this, the market is likely to continue to see downward pressure, as we are hanging around the 0.73 level. The uptrend line that I have marked on the chart suggests that we are going to continue to see support in this area just below, but if we break through this trend line, it is very likely that the Australian dollar will break down significantly.

AUD/USD Video 15.11.21

On the other hand, if we turn around and take out the top of the candlestick from the week, then we could go looking towards the 0.75 handle. Breaking above that then opens up even more bullish pressure, but at this point we would need to see a major turnaround in attitude to make that move happen. At this point, this is a market that will continue to see a lot of noisy behavior, but that makes a certain amount of sense due to the fact that the Australian dollar is extraordinarily sensitive to risk appetite and therefore we need to be cognizant of what is going on around the world.

You could make an argument for a bit of a bearish flag, but we have not broken down through that uptrend line to get that kicked off, so it is just a theory at this point in time. Ultimately, this is a market that is going to make a big move sooner or later, as we are compressing volatility, something that cannot last for the long term.

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