AUD/USD sell opportunity amidst the US dollar rally

AUD/USD has been in bearish trend since February 2021. Price recently dropped below last month’s low of 0.63580 owing to the stronger US dollar.

Currently, the price is making retracement and will possibly retrace to the 0.64216 major resistance level and 0.50 Fibonacci level, from where it is expected to drop further.

I am expecting the price will drop to 0.62259 daily support level and last year’s low. The US dollar is expected to continue its rally for the coming weeks and possibly months which will keep pushing the Australian dollar further down.

Fundamentally as long as the US dollar continues its rally the Australian dollar will keep falling. The US dollar will possibly continue its rally over the extended period mainly due to the bleak economic forecast in the European region and China.

However, the NFP data will be published on Friday coming week. If the data is positive and above expected figures it will strengthen the US dollar and will push AUD further down and in case it negative data we might see a strong surge in the price of the Australian dollar.

• The Australian dollar is expected to drop to last year’s low of 0.62259 against the strengthening US dollar.  
• The entry price has been set at a secure price after multiple confirmations.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio for this trade is 1:3.9.
• Good luck!

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