AUD/USD Forecast – Aussie Continues to See a Lot of Overhead Pressure

AUD/USD Forecast Video for 24.08.23

Australian Dollar vs US Dollar Technical Analysis

During Wednesday’s trading, the Australian dollar had a solid rally, bouncing back from the 0.64 level. Buyers might have their sights on the 0.65 level above, and that could include those looking to close out short positions. The situation is interesting, but the real question is whether we can actually reach that level. If we do, there’s a chance we could face some serious selling pressure. But it’s not like there aren’t reasons to consider shorting the Australian dollar. The Federal Reserve’s strict monetary approach plays a role, and the Australian dollar’s link to the global mobile economy and risk sentiment is also in the mix.

Checking out the 50-Day Exponential Moving Average, it’s currently at around 0.66 and moving down. That could act as a technical point of resistance. All in all, owning the Australian dollar right now might not be the smartest move, especially when compared to the US dollar. If we end up going below the lows we saw last week, there’s a chance we could drop to 0.63 or maybe even lower.

Considering the pretty big drop we’ve seen in the last couple of months, a bit of a bounce back wouldn’t be crazy. Monday and Tuesday’s moves seemed to suggest that vibe, hinting at a “fade the rally” kind of approach. With all the noise in the market, it’s crucial to approach things with a clear perspective. Right now, it looks like finding value in the US dollar might be a solid move, considering how much it’s gone down. To put it simply, jumping straight into shorting after such a big move might not be the best call. A more careful, short-term approach could be smarter, grabbing chances to go short little by little as they come up.

In a nutshell, the Australian dollar had a good boost during Wednesday’s trading, coming back from the 0.64 level. The 0.65 level above could be a target for buyers or those looking to close short positions but hitting it might bring on a wave of selling. The Australian dollar has its reasons for being shorted, partly because of the Federal Reserve’s strict approach and its connection to the global mobile economy and risk appetite. The 50-Day EMA at 0.66 could be a barrier. Right now, it might not be the best call to hold onto the Australian dollar against the US dollar. If we dip below last week’s lows, we could drop to 0.63 or even lower.

Despite the recent fall, a bit of a bounce back wouldn’t be out of the ordinary. Monday’s moves gave off that vibe, suggesting a “fade the rally” approach. With all the noise in the market, it’s important to approach it with a clear perspective. It seems like finding value in the US dollar could be a good move right now, considering how much it’s dropped. To put it simply, diving into shorting right after such a big move might not be the best plan. A more careful, short-term strategy might make more sense, grabbing opportunities to go short bit by bit as they come.

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