AUD/USD Forecast – Australian Dollar Continues to Show Uncertainty
AUD/USD Forecast Video for 27.09.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has gone back and forth against the US dollar during the trading session on Tuesday as we try to figure out which way we are going to go next. All things being equal, this is a market that looks as if the 0.64 level is going to be a major support level, as it has been over the last couple of weeks. If we break down below the 0.6350 level, then it opens up a move down to the 0.63 level, perhaps even down to the 0.62 level. On the other hand, if we turn around and break above the top of the candlestick for the day, we could make a move toward the 50-Day EMA, which is also the top of the falling wedge that I have drawn on the chart.
Over the next couple of weeks, the Australian dollar could very well bounce around in a back-and-forth type of scenario but given enough time the Aussie will have to determine whether or not it is going to move higher or lower, due to the fact that the Australian dollar is so highly levered to the commodities market, and of course global growth in general. On the other side of the equation, you have the US dollar, which is driven by safety, and as a result we just don’t know where we are going to go.
Ultimately, I think this is a market you need to be somewhat cautious with, unless of course you are a short term trader, then you will like this pair, because it gives you opportunities in both directions. However, you need to be cautious with position sizing as the market seems to be a bit erratic at the moment, and therefore you could see a run either toward or away from the greenback due to other factors, not just what’s going on in this pair. In other words, do not let the instability of the markets blindside you by being overexposed in one direction or the other if you are a short term trader. Longer term traders will simply be waiting to see where we break next and follow accordingly.
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