AUD/USD Forecast – Australian Dollar Reaches Higher

AUD/USD Forecast Video for 28.07.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied on Thursday, breaking above the 0.68 level during early trading. We have given back some of the gains, but it looks as if the Australian dollar is trying to find its footing, perhaps breaking to the 0.69 level above. That’s an area where we’ve already seen a bit of a double top, so it’ll be interesting to see if we can get there. If we do, then I think we have a massive fight on our hands.

Underneath, if we were to break down below the 200-Day EMA, then it’s possible that we could go looking for a 50-Day EMA, which is also supported. If we were to break down below there, then it’s likely that we could go looking to the 0.66 level, which was previous support. Anything below there would be a massive wipeout of the Aussie, but right now I think we’ve got a situation where we go back and forth and trade around these moving averages until we get some type of clarity.

Keep in mind that the Australian dollar has been looking for some type of reason to get moving, and of course it also has a high correlation to the commodity markets and of course the global growth situation. With this being the case, you need to pay attention to places like China and the European Union, as it could give you a bit of a “heads up” as to where the Aussie could go, as it is so heavily influenced by its export sector.

Keep in mind that there are a lot of questions being asked about the global economy at the moment, so with that being said, I think we get a situation where you continue to see a lot of choppy behavior, as traders are somewhat confused as to the overall economic direction. With this being the case, position sizing will be crucial as it can keep you out of trouble in these very choppy decisions. Ultimately, this is a situation where you need to be cautious, and therefore protect your account in a situation that will eventually see explosive momentum break out of this tight range that we have been in.

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