AUDUSD Forecast – Aussie Pulls Back Finally

AUDUSD Forecast Video for 20.06.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit during the trading session on Monday, as we wait for the market to test an area near the 0.68 level, which had been previous resistance. The fact that the market sliced right through it means that people will be looking to that area as a potential entry to the upside. After all, a certain amount of “market memory” could come into the picture there. Furthermore, just below the 0.68 level, we have the 200-Day EMA, which of course will attract a certain amount of attention.

On the upside, we have the 0.69 level, an area that has been important in the past, but quite frankly at this point I think it’s probably only a matter of time before we try to get to the 0.70 level. The 0.70 level of course is a large, round, psychologically significant figure, so it does make quite a bit of sense that it is not only a target, but perhaps a bit of a ceiling. The Reserve Bank of Australia has recently had a surprise interest rate hike, so that of course has made the Aussie a bit more attractive than the greenback, especially as the Federal Reserve paused its rate hike cycle last week. Whether or not that actually is a case longer-term remains to be seen, but at this point it certainly looks as if traders are focusing more on the Aussie than the greenback.

If the market were to break down below the 200-Day EMA, then the market could go lower, and at that point could even reenter the previous consolidation area. You can see just how volatile the market has become over the last couple weeks, as we have ran straight up in the air. Ultimately, a lot of this will come down to risk appetite, as the Aussie dollar is so heavily influenced by risk appetite and of course the commodity markets in general. It’s probably worth noting that the Friday session was a bit of a hesitation candlestick, so I do think that gravity is coming back into the picture.

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