AUD/USD Forecast – Australian Dollar Bounces Hard

AUD/USD Forecast Video for 27.10.23

Australian Dollar vs US Dollar Technical Analysis

Ultimately, this is a market that I think continues to see a lot of noisy behavior, and therefore you have to be cautious with your position sizing. That being said, we are at extreme lows, so it does make a certain amount of sense that we would see an attempt to recover. This recovery should offer a significant opportunity given enough time, due to the fact that every time we rally, there are plenty of sellers. The 0.64 level above is a major resistance barrier, that we have tested multiple times. We continue to see plenty of geopolitical concerns out there that will drive money into the US dollar, and of course higher interest rates in America which helps everything greenback related.

A rally at this point in time is very likely due to the fact that we have tested the 0.6275 level, which has been like a big “floor in the market.” A bounce from here does offer the patient trader an opportunity to take advantage of “cheap greenbacks”, as they will almost certainly be available given enough time. With this, I think that the 50-Day EMA hanging around the 0.64 level also offers yet another reason to believe that the market is going to continue to see plenty of overhead pressure.

If we were to break above the 0.62 level, then it’s possible that the market could go look into the 0.65 level, which is an area that is a large, round, psychologically significant figure. With this, I think you get a situation where the market continues to see a lot of opportunities, but we may have gotten a little overextended in the short term.

By waiting for an opportunity to start selling again, you will go with the flow, and it also jibes quite well with the down trending channel that we have at the moment. That being said, breaking down below the lows of the trading session on Thursday opens up a flood of selling, with the market going down to the 0.62 level, followed by the 0.60 level after that. Ultimately, the Aussie is not a currency I want to own in a dangerous environment like we have at the moment.

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