AUD/USD Forecast – Australian Dollar Continues to Show Volatility

AUD/USD Forecast Video for 11.12.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the course of trading on Friday as we continue to see a lot of noisy behavior overall. With that being the case, it’s also worth noting that we are hanging around the 200-Day EMA, which of course is an indicator that a lot of people will pay attention to. That being said, the market is trying to sort out whether or not we are going to go higher or lower, and now that we are heading into the holiday season, that probably doesn’t become any clearer at this point. After all, liquidity becomes a bit of an issue going forward, therefore I think you’ve got a situation where you need to trade short-term charts, and most certainly with as little leverage as possible.

Over the next couple weeks, traders will start to focus on the holidays and not so much on the markets. Furthermore, you have to keep in mind that a lot of people have made big money this year, and they will be willing to profit at this point. Taking a lot of risk at the end of the year is something that money managers typically will do, and therefore you need to be cognizant of the fact that the market may not have anywhere to be.

If we turn around and break above the 0.67 level, that would obviously be a very bullish sign, perhaps reaching the 0.69 level. Underneath, the 0.65 level is a significant support level, which is also backed up by the 50-Day EMA. In general, this is a situation where traders will continue to see a lot of back-and-forth choppiness more than anything else, so caution will be the better part of valor at this point.

In general, I think this is a market that will be paying close attention to interest rates in America, as it gives you an idea as to where the US dollar itself will go, and therefore risk appetite. If risk appetite picks up, that does help the Aussie, but on the other hand, if we start to see risk appetite fall apart, they could send this pair lower.

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