AUD/USD Weekly Forecast – Australian Dollar Breaks Down Significantly

AUD/USD Forecast Video for 27.02.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has initially tried to rally during the week, but then sold off quite drastically. At this point, it looks like the Aussie is getting ready to break through significant support, near the 0.67 level. Quite frankly, there’s a lot of risk out there and it makes a lot of sense that the Aussie would be a victim. The US dollar will continue to see a lot of noisy behavior, but then again quite a bit of strength due to the fact that the Federal Reserve remains very tight with its monetary policy, and of course the Australian dollar has issues due to the fact that it is so highly levered to global growth.

When you look at this chart, you can see that we bounced rather hard from the 0.62 level, to test the 50% Fibonacci level and the 200-Week EMA indicator. Since then, we have seen a lot of negativity and it looks to me as if the market is trying to continue the longer term downtrend. With this being the case, you may wish to flip down to shorter-term charts that show signs of a bounce, and then take advantage of those bounces as selling opportunities with the end goal of going down to the 0.66 level, maybe even as low as 0.62 level if things get out of hand and a major “risk off environment.”

As far as buying is concerned, quite frankly would take something coming out of the Federal Reserve along the lines of a complete reversal of attitude for me to think about doing that. This week’s candle has been very clear in its intentions.

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