AUD/USD Forecast – Australian Dollar Stabilizes

AUD/USD Forecast Video for 07.09.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the course of the trading session on Wednesday, as it looks like we are trying to hang on to the 0.64 region. We are slightly below there, but all things being equal, I think what you need to pay the most attention to is the massive “wipeout candle” on Tuesday, and whether or not we can break down below the bottom of it. If we do break down below the bottom of the candlestick, then it’s likely that the market could drop all the way down to the 0.62 level. All things being equal, this is a market that I think continues to see a lot of negativity, but whether or not we break down remains to be seen.

Rallies at this point in time should continue to be a nice selling opportunity as you can pick up a handful of “cheap US dollars.” After all, the US dollar continues to receive a lot of favor in the market due to the fact that there are so many questions out there about what’s going to happen with global growth, and course there is a potential global recession on the horizon. Furthermore, the interest rate offered on the US dollar right now is very attractive, so a lot of investors have been buying them.

All things being equal, the 0.65 level above is a significant resistance barrier, and if we were to turn around a break above there, then it’s possible that we could go looking to the 50-Day EMA. Regardless, I don’t think that happens and more likely than not, we are going to see a little bit of a rally that is followed by exhaustion. In other words, I don’t really have an argument for buying the Aussie dollar at the moment, but it is possible that we could see a change in attitude. However, we need to see a lot of momentum enter the market as well. Expect a lot of noise, and a lot of volatility going forward as the market will continue to see a lot of uncertainty.

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