AUD/USD Weekly Price Forecast – Australian Dollar Forms a Hammer

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has plunged a bit during the trading week but found enough support near the 0.64 level to bounce a bit. By doing so, the market looks as if it is ready to rally some, with the 0.67 level above being a major resistance barrier. The area being broken above would make a huge statement, but at this point I just don’t see how the Aussie starts to climb against the US dollar. I think this is a simple matter of the pair being oversold, and because of this I have no interest in chasing it down here. Unfortunately, that probably means sitting on the sidelines for a week or 2, waiting for value in the greenback.

The alternate scenario is that we break down through the bottom of the hammer, which of course is very negative. In that situation, we would see the market fall toward the 0.60 level underneath, perhaps even lower. However, I don’t think that we are quite yet in the panic phase that we would need to be to start seeing that.

This is a market that will continue to be noisy and difficult, but at the end of the day I think it’s also a market that favors the downside more than anything else. Trying to pick the bottom of a market is very difficult, and just because you have seen a hammer form does not mean that you are there. I suspect at this point the only thing you can probably count on is a lot of volatility, which is quite typical for this pair anyway. I’m looking for “cheap US dollars” on some type of bounce.

AUD/USD Price Forecast Video 03.10.22

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