AUDUSD Weekly Forecast – Australian Dollar Has Volatile Week

AUD/USD Forecast Video for 05.12.22

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has gone back and forth during the trading week, as we had broken above the 0.67 level. That being said, the market is likely to continue to see a lot of choppy behavior, because quite frankly there are a lot of different moving pieces at the moment.

Keep in mind that the market will continue to be based upon the risk appetite of traders around the world, and quite frankly we have gotten a little overdone. Because of this, it would not be surprising to see a pullback, and if we break down below the bottom of this weekly candlestick, it’s very likely the market then goes looking down to the 0.66 level.

On the other side of the trade, if we were to break above the 0.6850 level, then it’s likely that we could go much higher, perhaps reaching the 0.70 level. That’s a large, round, psychologically significant figure that a lot of people will pay attention to, so be aware that’s a potential target for the buyers. However, you should also keep in mind that the Australian dollar is highly sensitive to commodities and risk appetite.

Ultimately, this is a situation where we have a lot of volatility just waiting to happen, but I think once we break out of the range that this candlestick has made, then it could give us a bit of a “heads up” as to where we go over the next couple of weeks. Ultimately, this is noise that needs to correct itself so that we can start to put money to work.

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