AUD/USD Weekly Price Forecast – Australian Dollar Plunges Through Support
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has plunged through support during the trading week, slicing through the 0.67 level, an area that has been important for some time. By doing so, it shows that we have entered a major bear market, as the 0.67 level had been so important for multiple years. Now that we are through there, the 0.65 level is being threatened, and I suspect it’s probably only a matter of time before we see even more destruction.
I am fading rallies going forward, although I may not choose to do it on the weekly chart. In other words, I might drop down to shorter time frames in order to get better entries. I believe that we are heading to the 0.60 level before it’s all said and done, unless of course central banks start to change their tune. As they are all tightening up monetary policy at the moment, that does not seem to be very likely to happen, especially as inflation is getting out of control.
With this, fading short-term rallies will continue to be the way I trade this market, as the Australian dollar is highly levered to risk and commodities in general. After all, we are about to see the global economy slow down drastically, and I think this gives us an opportunity to take advantage of “cheap US dollars” anytime we do get a bit of a bounce.
The market breaking back above the 0.69 level would be a major feat, and I would have to stand up and take notice of that, but quite frankly I just don’t see how that happens anytime soon. With that in mind, I continue to remain bearish.
AUD/USD Price Forecast Video 26.09.22
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