Australian Dollar Gives Up Early Gains for the Week

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar initially rallied during the week but gave back the gains as we got close to the 50 Week EMA. Because of this, we ended up forming a bit of an inverted hammer and it certainly looks as if the Aussie dollar is struggling. If we were to break down below the 0.70 level, it could kick off a rather significant selloff. As long as we do not break the top of this candlestick, it is very likely that we could go much lower. That being said, if we were to turn around a break above the top of the candlestick for the week, then it is likely that we go looking towards the 0.75 level above.

We have been consolidating for a while, but now it looks as if we are trying to break through the bottom. If and when we do, the 0.68 level will be the first target, followed by a potential move down to the 0.65 level. That is not necessarily going to be the easiest move, but it certainly looks as if it is very possible at this point.

Keep in mind that the Australian dollar is highly sensitive to risk appetite, so you will have to pay close attention to how the markets are behaving overall. If we have more or less a “risk-on” type of situation, that does help the Aussie dollar, and of course, the exact opposite is true. One thing I think you can count on is a lot of volatility, but ultimately, we are more likely than not going to be building up enough inertia to make a huge move.

AUD/USD Price Forecast Video 09.05.22

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