AUD/USD Forecast – Australian Dollar Plunges

AUD/USD Forecast Video for 09.08.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen toward the crucial 0.65 level, a large, round, psychologically significant figure that has caused support in the past, so it’ll be interesting to see how we play out here. If we break down below the 0.65 level, then it is possible that we go down to the 0.64 level. That’s an area that has been important more than once, so I do think that this is a situation where we will have to look at this through the prism of whether or not that would change the overall trend. At this point, we are most certainly testing the bottom of what could be thought of as a huge trading range.

All things being equal, this is a situation where the market continues to see a lot of concerns about the overall risk appetite of traders and of course the global growth situation. Remember, the Aussie dollar is highly sensitive to commodities, and of course the overall growth of the world’s economy, and of course trade in general. This is not a good look for risk appetite, so I think you need to pay close attention to the fact that we make are looking to the US dollar for safety. After all, people do not want to risk money in commodity markets in a time of significant trouble.

If we do rally from here, the 0.66 level could be a nice selling opportunity, which is an area that has been previous support. The “market memory” could come into the picture, offering some type of resistance in that region. Even if we break above that level, then we have to worry about the 50-Day EMA offering resistance near the 0.67 level. In that area, I would expect to see a lot of selling pressure, and therefore I’d be more than willing to short this market. That being said, it does not look like the Aussie is getting ready to pounce in the short term, so I would be very cautious and recognize that the sellers are most certainly in control of the market right now as the US dollar has been strengthening against almost everything.

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