AUD/USD Weekly Forecast – Australian Dollar Tests Support

AUD/USD Forecast Video for 21.08.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has gone rather negative during the course of the week, testing the 0.64 level. The 0.64 level of course is a large, round, psychologically significant figure, in an area where a lot of people will be paying close attention to. A little bit of a bounce from here might make some sense, but I think it’s probably only a matter of time before the sellers will come back in due to the fact that the global economy seems to be shrinking, and of course there is a huge run toward the US dollar due to the fact that interest rates in America continue to spike.

If we were to break down below the bottom of the weekly candlestick, it opens up a move down to the 0.62 level. This is a market that is more likely than not going to offer plenty of “fade the rally” type of situations, but you will probably have to drill down to the daily charts in order to get that signal. If we were to break above the 0.66 level, it could usher in a bullish market, but even then I would be a bit hesitant to get overly excited due to the fact that the 50-Week EMA is just above there and is dropping.

Keep in mind that the Australian dollar is very sensitive to risk appetite and commodities, so we will have to pay close attention to what’s going on in those markets. As a general rule, I think this is a scenario where the market will continue to be noisy, which generally means that people will be looking for some type of safety in general, so I do think that that continues to help the US dollar overall.

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