AUD/USD Forecast – Australian Dollar Pulls Back From the 50-Day EMA

AUD/USD Forecast Video for 06.07.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially pulled back during the trading session on Wednesday, as the 50-Day EMA has offered a bit of resistance. The 50-Day EMA has been resistance more than once, and therefore it’s not a huge surprise to see that we have pulled back. However, it’s also worth noting that the market has been very noisy as of late, and I do think that it is probably only a matter of time before we have to make some type of bigger decision.

The 0.66 level underneath is an area where we’ve seen support previously, and therefore one would have to assume that there will probably be buyers in that general vicinity. The 0.66 level could be a target, but if we were to break down below there, then it’s likely that the market could fall down to the 0.65 level, and then possibly the 0.64 level. On the other hand, if we turn around and rally from here, the 200-Day EMA is near the 0.6750 level, and could be a bit of a short-term barrier. Beyond that, the market then goes looking to the 0.68 level.

All things being equal, keep in mind that the Aussie dollar is highly sensitive to commodities and risk appetite in general, so therefore you have to pay attention to multiple markets around the world, as it can give you an idea as to how risk appetite is going around the world, therefore it’s a bit of a knock on effect as to what happens with the Australian dollar. Ultimately, I think it’s probably only a matter of time before we see this market have to make a bigger decision, but right now it looks like we are still just hanging around and trying to figure out where they are going later.

It’s also worth noting that Tuesday was the Independence Day holiday in the United States, so there is a significant amount of catching up that the market will have to do, so I think we still can only read so much into what happens. That being said, position sizing is the only thing you can do to protect yourself.

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