AUD/USD Weekly Forecast – Australian Dollar Continues to Test Support

AUD/USD Forecast Video for 28.08.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has gone back and forth during the course of the week, as we continue to see a lot of noisy trading. It looks as if the 0.65 level in the 0.64 level both offer a barrier that the market will have to deal with. That being said, it certainly looks as if there is more selling pressure than buying pressure. And on shorter-term charts, it’s been more or less a “fade the rally” scenario.

If we break down below the previous weekly candlestick, it’s very possible that the Aussie dollar goes looking to the 0.62 level underneath, which has also been important more than once. Either way, expect to see a lot of noisy trading, and if we do break out to the upside, we could see a run to the 0.66 level, but we have to get through the crucial 0.65 level first.

Keep in mind that the Australian dollar is highly sensitive to global growth and the commodity markets. In other words, there are a lot of external influences that can come into the picture and give people headaches. If and when we see markets react to those, we need to understand that the Australian central bank itself is somewhat ambivalent, some are not necessarily trading on their monetary policy. However, the US central bank is rather tight with its monetary policy, some of which has shown itself in this market. I do believe that this is a scenario where we have a lot of noise ahead, and therefore you need to be cost efficient with your position sizing. In the end, this is a market that looks very bearish, but could turn around on a dime.

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