AUDUSD Forecast – Australian Dollar Bounces

AUDUSD Forecast Video for 28.04.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has bounced a bit during the trading session on Thursday, as the 0.66 level has offered support previously. At this point, we are trying to determine whether or not we are going to break down below that level and continue to go further down. That being said, the market initially tries to rally during the session, but is starting to struggle a bit with hanging onto the gain. The market continues to see a lot of noise, but it’s also worth pointing out not only do we have a bearish flag, but we also have a bit of a “H pattern” forming as well.

The 0.67 level above features the 50-Day EMA, which of course could offer quite a bit of resistance as well. All things being equal, this is a market that I think eventually sees sellers come back into the market to drop yet again. That being said, if the market were to take off to the upside, then clearing the 50-Day EMA could open up the possibility of a move to the 0.68 level, which is currently where the 200-Day EMA resides.

I do believe this point in time, we will see a “fade the rally” type of market, and therefore it’s likely it’s probably a scenario where it’s difficult to get overly bullish on the Australian dollar, especially as we have a lot of economic headwinds out there. Remember, the Australian dollar is very sensitive to economic news, and of course global trade. It’s a commodity currency, and that is probably going to be one of its weaknesses going forward.

The Federal Reserve comes into focus as well, due to the fact that the central bank will more likely than not continue to stay “tighter for longer”, despite the fact that a lot of traders out there wish differently. It’s been a bit of a standoff between the trading community and the Federal Reserve, and eventually something has to give way. I believe we are going to see that happen rather soon, so therefore I’ll be paying close attention to a potential breakdown as it certainly looks as if that’s the direction we will be heading eventually.

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