AUDUSD Forecast – Australian Dollar Attempts to Recover
AUDUSD Forecast Video for 02.06.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied a bit during the session on Thursday as we are trying to recover in general. The market has a significant amount of resistance above that a lot of people will be paying close attention to, especially near the 0.66 level which was previously support. This area should have a significant amount of “market memory”, and therefore is likely that we would see sellers come back into the market and try to push the Australian dollar lower. Looking at this chart, the overall “measured move” of the previous consolidation area suggests that the Aussie is going down to the 0.64 level. The 0.64 level should be supported, but if we were to break down below there, then the Aussie would almost certainly break down quite drastically.
If we do rally from here, the 0.66 level would be the first major resistance barrier, followed very quickly by the 50-Day EMA. The 50-Day EMA indicator is one that a lot of people pay close attention to, as it is quite often used for defining the quarterly trend. That being said, a lot of this is going to come down to whether or not commodities are rallying and of course there is the idea that we are going to have global growth. Furthermore, the market will have to determine whether or not risk appetite is going to be strong, which of course is highly influential for the Aussie dollar as well.
In general, I think we are going to continue to be very choppy, so you need to be cautious with your position sizing, due to the fact that the markets will continue to be very skittish, therefore you could see quite a bit of damage to your account based upon the latest headline, or the latest narrative coming out of financial media. Keep in mind that there are a lot of questions out there right now, and therefore you have to be very protective of your trading capital.
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