AUD/USD Forecast – Australian Dollar Continues to Consolidate

AUD/USD Forecast Video for 29.08.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session here on Monday, but the 0.64 level is an area of support that has to be watched regardless. With that being the case, if we were to break down below the lows of the Friday session, it opens up significant selling, perhaps sending the Aussie down to the 0.6250 level. Keep in mind that the Aussie has been very negative for quite some time, and I just don’t see how that changes. All things being equal, market participants continue to look at this through the prism of consolidation, but also recognize that the market will continue to see a lot of noise.

If we do rally from here, the 0.65 level is an area where I think a lot of people would be paying close attention to, which of course is a very important level that we have seen show itself multiple times. If we do break above there, then the next target would be the 50-Day EMA, which is crucial, as far as technical analysis is concerned.

On the other hand, I think you also have to keep in mind that there’s the very real possibility that we go back and forth for a while. This is also exacerbated by the fact that we are at the end of vacation season, meaning that there’s probably a certain lack of volume at this point that could come into the picture, thereby making the market look for some type of reason to move.

Keep in mind that the Friday session is the next Non-Farm Payroll announcement, and that probably will have a major influence on risk appetite as well. Quite frankly, Wall Street will be looking for bad news to celebrate, as it’s all about the Federal Reserve monetary policy at this point, which of course translates into what happens with the US dollar and the Forex markets as well. I think more likely than not, between now and Friday you are probably going to see a lot of back and forth in not only this pair, but several other Forex pairs as well.

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