AUD/USD Weekly Price Forecast – The Australian Dollar Continues to be Thrown Around

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has gone back and forth during the course of the trading week to show signs of hesitation in both directions, as we try to figure out where the economy is going to go. Global markets continue to look at the Aussie through the prism of commodities, which of course have been shaky, to say the least. Because of this, I think you have a situation where the Aussie could very well test the 0.70 level, but that would more likely than not be thought of as a “bear market bounce.”

If we break down below the bottom of the candlestick for the week, we would also break down through the candlestick from the previous week and start falling rather drastically. This would almost certainly be done in congruence with the US dollar strengthening against most other currencies, so it would more or less be a major “market move.” In that scenario, I would anticipate the Australian dollar dropping to the $0.66 level, possibly even $0.65.

If we do break higher, the 50 Week EMA just broke through the 0.72 handle and looks as if it is ready to go lower. Because of this, I think that any rally should be looked at as a gift to start picking up cheaper US dollars as the commodity markets have been slammed recently.

You should also pay close attention to China, because China is by far Australia’s biggest customer for hard assets, so it all ties together quite neatly that we would see mainland China and the Australian dollar move together. Recently, they have been talking stimulus in China, but whether or not that actually picks the economy up off the floor is still an open question.

AUD/USD Price Forecast Video 11.07.22

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