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AUD/USD Weekly Price Forecast – The Australian Dollar Plunges Again

By:
Christopher Lewis
Published: Oct 14, 2022, 13:20 UTC

The Australian dollar has fallen hard during the trading week, as we continue to see a lot of noisy behavior. That being said, the market has turned around quite nicely.

Australian dollar FX Empire

In this article:

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has woken down significantly during the course of the week but did find a certain amount of support to turn things around. That being said, the market is likely to continue seeing a lot of negativity, but that does not necessarily mean that we continue to plunge straight down. After all, it does make a certain amount of sense that we would see this type of negativity due to the fact that the Australian dollar is highly sensitive to commodity markets and of course Asia. Ultimately, this is a market that has gotten a little bit ahead of itself, so I do think that some type of bounce could be coming.

Regardless, I think that bounce offers a nice selling opportunity, and I do think that the Federal Reserve will remain tight much longer than people expect. The 0.67 level above is a major ceiling that we would need to break above in order to make a real statement. The area would be difficult to get above, and if we did it would most certainly be a major statement if that were to happen.

When you look at this chart, it’s obvious that we are very negative, but the overextension is more likely than not going to be a situation where the market will have to bounce just if for no other reason than a reversion to the mean. When that happens, it should set up a nice selling opportunity at the first signs of exhaustion. The Federal Reserve will continue to be very tight with its monetary policy, and therefore I think you continue to see downward pressure overall.

AUD/USD Price Forecast Video for 17.10.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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