AUD/USD Forecast – Australian Dollar Plunges During Thursday Session

AUD/USD Forecast Video for 22.09.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has shown itself to be very weak during the trading session, slamming into the 0.64 level. After all, the 0.64 level is an area that’s been important more than once, so it does make a certain amount of sense that we have seen traders attracted to it. I believe at this point we probably have a scenario where we are looking for buyers in this general vicinity, but it’s worth noting that there seems to be a lot of fear out there, and that could work against the Aussie over the longer term. Nonetheless, there is a lot of support down to the 0.6350 level, so I’m not necessarily looking to get short here.

On the chart, there has been a falling wedge that we had pierced during the trading session on Wednesday, but gave back all of those gains rather quickly as the Federal Reserve meeting did not produce something that traders like. At this point, we are still back in that falling wedge, so it will be interesting to see how this plays out. If we turn around and rally from here, it’s not until we break above the 0.6520 level that I would be bullish. At this point, it is still going to be a scenario where we are looking for some type of reason to celebrate, but we just don’t have it at the moment.

If we were to break down below the 0.6350 level, then it opens up a move down to the 0.6250 level, perhaps even down to the 0.60 level which of course is a major level. That being said, we are at such depressed levels that if the Aussie continues to fall like this, it could be a very negative turn of events and cause major problems as it would show just how much fear there is out there at the moment. If we turn around and rally, that would be more or less going to be a situation where traders will be feeling better about most things, and you would probably see this ripple through stock markets, currency pairs, and the like.

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