AUD/USD Weekly Price Forecast – Australian Dollar Has Noisy Week
The Australian dollar went back and forth during the course of the week, as we have essentially tread water. All things been equal, the market is going to continue to be very noisy due to the fact that the Aussie dollar is so highly correlated to risk appetite and of course commodities. On the other side of the equation, the US dollar is considered to be a safety currency, and therefore it makes quite a bit of sense as to the markets running towards it if there are more concern.
AUD/USD Video 20.12.21
When you look at this chart, it is easy to see that the 0.70 level has been important and should more than likely continue to offer support over the longer term. If we were to break down below the 0.70 level, then the market is likely to drop significantly, perhaps dropping towards the 0.68 handle. On the other hand, a break above the top of the candlestick for the week opens up the possibility of a move towards the 0.73 handle, and then maybe even the 0.74 level.
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This is a market that is going to be moving with risk appetite in general, so I think what we are looking at right now is a very likely back-and-forth type of situation as we try to figure out the next move. This is all about risk, so it suggests to me that the market is going to continue to see volatility, but perhaps more based upon the lack of liquidity that we are going to be dealing with between now and New Year’s Day. I would not expect much.
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