AUD/USD Forecast – Australian Dollar Plunges Into Support

AUD/USD Forecast Video for 18.07.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has shown itself to be somewhat negative to kick off the trading week, testing out the 0.68 level underneath as support. All things being equal, this is a market that looks as if it is trying to figure out where it wants to go next, but it is worth noting that we did offer a little bit of resiliency near that crucial 0.68 level, so it’ll be interesting to see how this plays out. If we turn around and break above the top of the candlestick for the trading session on Monday, then it’s likely that we could go looking to the 0.69 level. The 0.69 level is an area that I think a lot of people have to pay close attention to, as it has formed a little bit of a short-term “double top.”

If we were to break below the 200-Day EMA at the 0.6750 level, then it’s possible that we could break down from there and go look into the 0.67 level. In general, this is a market that I think you will have to continue to pay close attention to, as it is highly sensitive to risk appetite and of course the Aussie dollar itself is highly sensitive to commodities. Global growth will come into the picture, as the Australian economy is so sensitive to what is going on around the world, and whether or not demand for commodities will start to increase. Furthermore, Chinese economic numbers will have a major influence on what happens next, so that is also worth paying attention to.

If the economy starts to look rather rough, it’s likely that the Aussie dollar will be a victim. On the other hand, if the global economy looks as if it is starting to pick back up, then the Aussie dollar tends to be a strong performer in that environment. Pay close attention to the overall global markets, because if they start to rally, that typically means that the Australian dollar will follow right along with them. Expect volatility, but it does look like the Americans at least are trying to turn this market around and send it higher.

For a look at all of today’s economic events, check out our economic calendar.