Australian Dollar Gets Hammered Again

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar fell hard during the trading session on Monday to continue the overall negative behavior. The Australian dollar has sliced through the 0.72 level, showing signs of further weakness. At this point, the US dollar is a bit like a wrecking ball when it comes to almost everything it is measured against, and that will more likely than not continue to be the case going forward. Because of this, I do believe that it is probably only a matter of time before rallies will get sold into, and the first signs of exhaustion may more than likely be an opportunity.

Looking at this chart, if we were to turn around and retake the 0.73 level, then we might make an argument for an attempt to get back to the highs, but at this point, it is obvious that the US dollar is the favored currency, especially as there is quite a bit of concern around the world with global growth and geopolitical concerns. At this point, I just do not argue to short the US dollar, even if we do bounce.

The one thing that makes this market a bit different from many others is that the Australian dollar is so highly levered to the commodity markets. If we do start to see the commodity markets spike again, that might be reason enough for the Australian dollar to buck the trend that we see around the world. That being said, now the market looks very likely to be noisy regardless of what happens next, so you need to be cautious with your position size, but we are a bit oversold in the short term.

AUD/USD Price Forecast Video 25.04.22

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