AUD/USD Weekly Price Forecast – Aussie Drops For The Week

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has fallen significantly during the course of the trading week, showing signs of weakness as we could perhaps drop back towards the massive uptrend line from the symmetrical triangle that we had broken out of recently. Keep in mind this is a massive pattern, so a lot of people will be watching this very closely. A breakout of this area is a sign that things could get interesting, but after this past week, it is possible that the market may simply reenter a rectangle shaped consolidation area.

This is an area between that and the 0.6650 level that should offer a bit of support. If it does not, then it shows that the market is just simply going to remain sideways overall. Most of this probably has to do with the US dollar itself and whether or not traders are feeling like taking any risk. Recently, we’ve seen a lot of concerns about interest rates and of course inflation picking up yet again. And if that’s going to be the case, the US dollar, assuming that it’s us inflation we are talking about should truly take off.

In general, this is a market that remains noisy, and I think it is probably somewhat difficult to get a read on other than you have to assume at least in the short term that perhaps we are going to head back into that sideways consolidation. However, if we get a nice bounce of about 50 pips or so, then the buyers may come in and try to reach towards the 0.6850 level, maybe even 0.69 above.

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