AUDUSD Forecast – Australian Dollar Bounces

AUDUSD Forecast Video for 13.04.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Wednesday, showing signs of life again as we continue to see a lot of noise around the 0.67 level. The 0.67 level is an area that’s been important multiple times in the past, and therefore it’ll be interesting to see how this market plays out in the current environment.

The Australian dollar is highly sensitive to risk appetite and global growth, so you should pay close attention to both of those. The Aussie dollar is highly correlated with the commodity markets, so that is something worth paying attention to as well, as they will have a major influence on where this pair goes.

The 50-Day EMA sits near the 0.6225 level and is dropping rather significantly. The market currently sees a lot of support near the 0.66 level, an area where we have bounced from. The market continues to see a lot of volatility, and that is going to continue to be the major problem. Ultimately, this is a market that recently had broken down below and uptrend line, so one would have to think there is a little bit of something to that as well, as technical analysis based traders will be paying close attention to it.

If we can break above there, then it would be a very bullish sign, but ultimately, I think this is a scenario where we are going to see more noise than anything else. Because of this, position sizing will be very crucial, as the volatility could pick up quite drastically. That would be nothing new for this pair, as the Australian dollar does tend to be very noisy in general.

It’s probably worth noting that the longer-term trend, at least on the monthly chart, is negative. We’ve had a nice bounce recently, followed by a significant fall. At this point, I do think it’s probably only a matter of time before we see a continuation of the downward pressure if all of the global fears of a slowdown come true. Whether or not the market buys it anytime soon remains to be seen, but it’s a story that I think a lot of people are starting to think about, thereby putting negativity in the Aussie.

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