AUD/USD Weekly Price Forecast – The Australian Dollar Finds Support

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has fallen rather significantly during the week, breaking below the crucial 0.6750 level. However, we have turned around to show signs of life and ended up forming a bit of a hammer-shaped candlestick. Looking at this chart, I think we are more or less looking at a potential bounce, but this is not something that I have any interest in trying to buy, I think it’s more likely than not we are going to see a bit of a bounce in the short term as we had gotten so overdone.

The market continues to be very volatile, but that should not be a huge surprise considering the environment that we are currently in. Given enough time, I think this is a situation where we will see a “fade the rally” setup, but that might be closer to the 0.70 level. After all, people are starting to question whether or not central banks will truly continue to tighten as economic conditions deteriorate, and people are starting to suggest that perhaps we have hit “peak inflation.” With this in mind, I think the market is more likely than not going to continue to be very noisy, but if you are patient enough you should be able to pick up cheap dollars.

That being said, if we were to get a weekly close above the 0.70 level, you would have to take the threat of a turnaround somewhat seriously. Pay attention to the Federal Reserve, and of course inflation numbers. If they continue to be extraordinarily strong, then it does make a lot of sense that we would see the US dollar strengthened again.

AUD/USD Price Forecast Video for the week of 18.07.22

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