AUD/USD Weekly Forecast – Australian Dollar Has Choppy Week

AUD/USD Forecast Video for 10.07.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has gone back and forth during the course of the trading week, with the possibility of trying to build up enough momentum to go in a bigger move. If we break down below the 0.66 level, then it’s possible that the market could drop down to the 0.65 level. The 0.65 level then opens up the possibility of a move down to the 0.64 level.

On the other hand, if we were to turn around and take out the top of the weekly candlestick from the previous week, then I think we can look into the 0.68 level, which was the top of overall consolidation until we had this recent bout of ridiculous volatility.

All things being equal, I don’t know that much has changed over the last couple of weeks, only that we have reaffirmed a 0.66 level as being important. I think you continue to see a lot of noisy and choppy behavior, as both the Reserve Bank of Australia and the Federal Reserve are looking very tight and hawkish with their monetary policy, so therefore I think we continue to see a lot of noise over the next several weeks.

That being said, if we can break out of the rectangle that we have been in, then obviously it can mean that we are about to have a bigger move. We are in the summer, and this tends to be a very quiet time of the year as well, so this all lines up for a bit of a seasonal sideways trade.

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