AUD/USD Forecast – Australian Dollar Rallies Into Resistance

AUD/USD Forecast Video for 31.10.23

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar rallied right away during the trading session on Monday to show signs of life again this week. However, we continue to look at the 0.64 level as a major resistance barrier that’s going to be difficult to overcome, and therefore, it would not be surprising at all to see sellers come back into this market. All things being equal, this is a market that has been dealing with a lot of consolidation, as we have seen so many external pressures on currencies. All things being equal, the Australian dollar is considered to be a “risk on” currency, and therefore we need to pay attention to the fact that there are a lot of things going on that could cause major issues.

The US dollar of course is considered to be a “safety currency”, and therefore we need to pay close attention to it as the US dollar is the first place people will run to when there are problems, therefore one would have to assume that there will be a lot of troubles for this pair. The market has also seen a lot of support underneath, near the 0.63 level, so you need to pay close attention to it. With this being the case, the market is likely to continue to see a lot of volatility, but I do think that short-term traders will continue to look at this through the prism of short-term charts more than anything else.

On the other hand, if we can break above the 0.64 level, then it is likely that the market could go look into the 0.65 level but if we do break down below the recent lows, then the market is likely to open up the possibility of a move down to the 0.62 level. The 0.62 level is a potential target on that breakdown, but I do think that eventually we could go down to the 0.60 level. Obviously, that would be a pretty significant turn of events, but it is very possible if you think about all of the negativity that’s out there, and of course the fact that the US dollar pays more in swap over the longer term.

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