AUD/USD Weekly Price Forecast – Australian Dollar Plunges After RBA Dovish
The Australian dollar has fallen during the course of the week, reaching towards the 0.74 level. In fact, we even broke down below that level towards the 0.7350 level, an area where there has been a significant amount of noise in the past. That being said, it must be noted that the Aussie dollar is forming a bit of a hammer on the Friday session, which of course suggests that we may be getting close to the end of selling. Furthermore, you need to recognize that the US Dollar Index pulled back from a major resistance barrier, so that might have a bit of a “knock on effect” at this point as well.
AUD/USD Video 08.11.21
All things been equal, if we can break above the 0.76 level, the Australian dollar is likely to continue going much higher, as the reopening trade is certainly starting to take hold for most traders. With that being the case, I do not necessarily want to short this market, unless of course we break down below the weekly low, then I might be convinced that there is a little bit of momentum. All things that I see at this point on Friday though suggest that perhaps the US dollar might have peaked for the short term.
This is a market that is highly levered to risk appetite and commodities as well, so you need to keep that in mind also. Because of this, I think you need to be very cautious about jumping “all in” right away, but I certainly think that it is probably only a matter of time before we try to recover.
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