AUD/USD Weekly Price Forecast – Australian Dollar Plummets for the Week

The Australian dollar has fallen quite sharply during the course of the week as we have seen a major “risk off move” around the world. With the US dollar strengthening, the Australian dollar was a punching bag, especially due to the fact that the Australian economy has been shut down randomly, which of course is going to continue to work against the Aussie dollar. The Chinese mainland of course has been providing negative economic numbers as of late as well, so that of course does not help the situation.

AUD/USD Video 23.08.21

When I look at this chart, I think the 0.70 level will more than likely be targeted, but it may take a little bit of time to get there. Ultimately, this is a market that I think will continue to see a lot of negativity and therefore the real question is going to be the 0.70 level. If we break down below that level, that could be the beginning of something rather huge. The question now is whether or not this is a “capitulation candle”, or if it something much more significant?

From a longer-term standpoint, I believe that the candlestick for this coming week is going to end up being crucial I believe that we will have a much clearer picture of the longer-term target for this pair once we get that candlestick, so from a longer-term standpoint I think it is going to be all about the 0.70 level. It is worth noting that Friday is starting to turn things around in the Australian dollar, but it pales in comparison to the massive amount of selling pressure that we have seen.

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