AUD/USD Forecast – Australian Dollar Rallies Into Resistance

AUD/USD Forecast Video for 06.10.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Thursday, as we have slammed into the previous area of support, which should now offer resistance. The 0.6350 level is an area that previously had been important multiple times, so it’s not a huge surprise to think that the Aussie may struggle a little bit here. Because of this, I think you got a situation where you are probably going to be fading rallies, which quite frankly has been the case for the Aussie for some time. Furthermore, we have the Friday jobs number coming out, and that of course will have a major influence on what happens with the US dollar as well.

The 50-Day EMA is near the 0.6460 level and dropping, so that is yet another technical indicator that a lot of people will be paying attention to. Ultimately, this is a market that I do think will continue to move after the Friday session as it could have a major influence on the short end of the yield curve in the United States, which of course has a major influence on the US dollar.

The Australian dollar of course is very sensitive to the global growth situation and of course Asia. Because of this, you need to keep an eye on how markets around the world are going, because it can be a bit of an external influence on the Aussie. Furthermore, it’s also a proxy for several hard commodities, so that all comes into the picture as well. Underneath, I see the 0.63 level as short-term support, and an area that could cause a little bit of noise. Anything below there then opens up a threat to break down to the 0.62 level over the longer term. I think the only thing you can count on is a lot of noisy behavior here, and therefore position sizing will be crucial as to whether or not you survive a lot of the volatility that we are about to see.

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