AUD/USD Forecast – Australian Dollar Continues to Plunge

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has plunged at the beginning of the trading session on Thursday as the bottom has fallen out. And at this point in time, I think you’re going to be hard pressed to get involved, unless you are aiming for the 0.6450 level underneath. Quite frankly, we have seen an absolute amount of panic in this market that I can’t remember the last time I saw. The Australian dollar, of course, is taking the brunt of the action in relative fashion against the US dollar as the US dollar is considered to be a safety currency.

At this point in time, I do think that we are getting closer to support than any type of continued meltdown. So, I’ll be watching the 0.6450 level to see if we get a bit of a bounce. Quite frankly, we are on the precipice of something rather ugly happening in various markets around the world. And if this doesn’t stop, central banks will step in and take some type of action. Otherwise, we could find ourselves in a nasty global recession or worse.

With all that being said, this is a pair that I’ll definitely be watching, but I’m not willing to jump into quite yet. What I want to see is a little bit more of a drop and a bounce or a complete turnaround on a daily candlestick to start to build a position. Don’t jump in with a huge position right away into any market right now. This one, of course, won’t be any different.

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