AUDUSD Forecast – Aussie Dollar Continues to Threaten Wedge

AUDUSD Forecast Video for 15.12.22

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has risen again early during the trading session on Wednesday as we are threatening to break out of the potential rising wedge. This would obviously be a very bullish sign and could open up the Australian dollar for a move to 0.70 level. However, the Federal Reserve meeting has not happened yet, and a lot of traders will be out there looking to see what Jerome Powell has to say.

I suspect that he is probably going to try to talk down a lot of the risk-taking, because quite frankly that is working against the goals of the Federal Reserve, as the market continues to see extraordinary demand, but also has to deal with the questions around the world as far as whether or not there’s going to be growth.

After all, we have a lot of noise out there to chew through, so it will be interesting to see what Jerome has to say. I suspect he will do everything he can to hammer down risk appetite, and that could directly affect this pair. I would anticipate that the Aussie will also react to Asian markets as well, especially as China is trying to reopen. That is part of what’s been driving the Aussie higher, but quite frankly I don’t think that’s going to be enough.

A lot of this is going to be about the US dollar in general, to keep that in mind. With that being the case, I suspect that we have a situation where the markets will continue to be very noisy, but I do think that we are getting close to some type of corrective phase. That being said, Jerome Powell has been known to screw things up.

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