AUD/USD Forecast – Aussie Continues to test 50-Day EMA

AUD/USD Forecast Video for 12.07.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally a bit during the trading session on Tuesday, as the 50-Day EMA has caused a bit of resistance. The 0.67 level has offered resistance as well, so that being said, the market is likely to continue to bounce around between there and a 0.66 level. The 0.66 level underneath has been significant support, and therefore if we were to break down below that level, it’s likely that the market could go down to the 0.65 level. The 0.65 level of course is an area that has been important a couple of times, and was where we bounced from previously.

If we were to take off and break above the 0.67 level, that would allow the Aussie to look into the 200-Day EMA above, extending near the 0.6750 level. After that, then you have the 0.68 level which was previous resistance as well. All things being equal, I think we are just going to hang around and chop in this area, which is a microcosm of what I see across the Forex markets overall, as it seems like there are a lot of questions as to where we’re going next.

In general, this is a market that I think continues to ask questions about the global economy, and that of course has a major influence on the Aussie, right along with the commodity markets, and therefore we need to pay close attention to the idea of whether or not there is going to be global growth, as that will have a lot to do with the man from Australia and it’s mining industry. Furthermore, there are also concerns about deflation in China, which has a negative effect on the Aussie as well, as China is by far the biggest customer of Australia’s commodities.

At this point, you probably need to focus on shorter-term charts, because quite frankly we continue to see a lot of indecision, therefore it’s likely that you will use the daily chart as a guide, perhaps go looking toward the short-term charts to place the actual trades. Position sizing should probably be a bit smaller than usual, as the choppy behavior will make hanging on the trades a little bit more difficult.

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