AUD/USD Price Forecast – The Australian Dollar Continues to Plummet

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen hard during the trading session on Monday as we continue to see more of a “risk-off” type of behavior around the world. That being said, it looks as if we are approaching a significant amount of short-term support at the 0.6950 level. If we can break it down below there, then it’s likely that the Australian dollar will fall back down to the recent lows that we had bounced from. Breaking down below that level will open up a flush lower.

Any rally at this point in time I will look at with significant suspicion, because quite frankly the risk appetite out there is miserable, and it seems like it’s getting worse. With the CPI numbers coming out on Friday much stronger than anticipated, the Federal Reserve is going to have to be extraordinarily aggressive.

There are times when the situation changes quite drastically, and Friday almost certainly was one of them. There were people out there still thinking that the rate of inflation was slowing, but Friday proved that to be incorrect thinking. Because of this, some of the market may have been caught offside, and therefore we may continue to see plenty of sellers.

Ultimately, I don’t have a scenario in which I am willing to buy this market, because I believe that every time we rally, there will be plenty of people willing to pick up “cheap US dollars.” Furthermore, China is now shutting Shanghai down again, so who knows what comes out of that huge mess? Ultimately, this is a market that looks like it’s going to go looking toward the lows and beyond. The only thing that I can see changing this is if the Federal Reserve suddenly changes its attitude.

AUD/USD Price Forecast Video 14.06.22

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