AUDUSD Forecast – Aussie Plunges
AUDUSD Forecast Video for 01.02.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has fallen rather hard during the trading session on Tuesday to pierce the 0.70 level. However, we have seen a bit of support in this area as you would expect, due to the large, round, psychological figure. If we break down below the bottom of the candlestick for the trading session on Tuesday, that opens up a move down to the 0.69 level.
That being said, it’s worth noting that the Federal Reserve meeting happens over the next 2 days, and it suggests that we will have a lot of volatility going forward. After all, we already know that there’s going to be a bit of an interest rate hike, but it’s going to be more about future expectations at that point. In other words, we need to see how the market reacts to that question and answer session afterwards that gives us an idea as to where we go in a much bigger move.
It’s worth noting that the 50-Day EMA is crossing the 200-Day EMA underneath, which is the so-called “golden cross.” Nonetheless, this is a market that has been a little overdone, so it does make a certain amount of sense that we would need to see a pullback like we are starting to get. If the Federal Reserve can finally convince the market that it’s serious about keeping monetary policy tighter for longer, it may see the US dollar pick up a bit of strength. It’s worth noting that the Reserve Bank of Australia has recently had to deal with higher inflation as well, so the Australian dollar may outperform several other currencies to begin with. Either way, a pullback does make a certain amount of sense.
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