AUD/USD Price Forecast – Australian Dollar Plunges But Looks to Stabilize

The Australian dollar has plunged during the trading session on Friday, crashing through the 0.71 area only to turn around and bounce. All things been equal, I think this is a market that probably goes lower based upon the fundamentals, but a lot of what we had seen during the trading session was more or less panic due to the new coronavirus concerns. A new variant coming out of South Africa is supposedly much more resistant to vaccines, and therefore the world panic. That being said though, the Americans were away on Thursday, so they certainly were not paying attention to their desks when this news hit. Because of this, I think this may end up being a bit of an overreaction.

AUD/USD Video 29.11.21

I believe that rallies will be sold into, as the Australian dollar has its own problems. However, think a lot of this recent move has been more or less overdone, so I am looking for some type of exhaustion above that I can sell into. This would be especially interested near the 0.72 handle, but if we broke down below the bottom of the candlestick, I would probably go looking towards the 0.70 level. That being said, the market is overdone in general, so this might be a story for later this month. That being said, I have no interest in buying this market nor do I have any interest in trying to play the bounce. I think it is simply a matter of waiting for an opportunity down the road and taken advantage of it. The 0.70 level is still my target, and if we break down below that then we would be looking at the 0.68 handle.

For a look at all of today’s economic events, check out our economic calendar.