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AUD/USD Weekly Forecast – Australian Dollar Goes Back and Forth

By:
Christopher Lewis
Published: Sep 22, 2023, 16:09 GMT+00:00

The Australian dollars gone back and forth during the course of the trading week, as we continue to see a lot of confusion.

Australian dollar bills, FX Empire

In this article:

AUD/USD Forecast Video for 25.09.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has been all over the place during the course of the week, as we continue to bounce around in a 100 point range. All things being equal, this is a situation where we are testing a major low, and of course we could see a bigger move coming down the road. If we were to break above the top the weekly candlestick, then it’s likely that we could go looking to the 0.66 level. On the other hand, if we were to break down below the lows of the last couple of weeks, then it’s possible that we could go down to the 0.62 level.

The Australian dollar could get a little bit of a boost from inflation, in the sense that commodity markets do tend to strengthen in an inflationary environment. If that’s the case, that may push up demand for the Aussie dollar, but at this point I still think that we are trying to sort things out, and you are more likely than not going to continue to see a lot of back-and-forth choppy behavior on a short-term timeframe. All things being equal, this is a market that is getting ready to make a bigger move, but we need to see an impulsive candlestick to get an idea as to where things go next.

All things being equal, I think we will get a bigger move sooner or later, but I also recognize that the market is going to see a lot of volatility, and sooner or later somebody is going to have to capitulate. Whichever side loses it, we could see a huge run in one direction or the other.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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