AUDUSD Forecast – Australian Dollar Attempts a Recovery

AUDUSD Forecast Video for 17.03.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit against the US dollar during the trading session on Thursday, as we are trying to recover from the recent selloff. Over the last couple of days, we have gone back and forth between 0.66 and 0.67, and now it looks like we are trying to figure out whether or not we are going to break out of this area, or if we are simply going to continue trading in this general vicinity.

When you see the most recent price action over the last several weeks, you can see that it has been basically negative, and therefore it seems like we are ready to continue going lower sooner or later. You will notice that the 0.67 level has been important multiple times in the past, so therefore you would have to believe that the area will continue to hold quite a bit of importance.

Even if we were to break above the 0.67 level, it’s worth noting that the area just above it was a consolidation area that reached to the 0.68 level. In other words, it may be very difficult to break out to the upside. The area should now be very difficult and very noisy, so therefore even if we do take off to the upside, it’s really not until we break above the 0.68 level that it looks like the market could really start to take off. The 50-Day EMA sets right around there as well and is dropping very rapidly so it does make sense that there would be quite a bit of selling pressure.

Underneath, if we break down below the 0.6550 level, then we are free to start plunging again, perhaps down to the 0.63 level. Keep in mind that the Australian dollar has a lot of risk appetite attached to it, so if this is going to be the type of market environment where there is still a lot of fear, I suspect that the Aussie dollar will more likely than not continue to have some issues going forward. Furthermore, a lot of this could come down to the Federal Reserve interest rate decision next week, which of course will be widely watched.

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