AUDUSD Forecast – Australian Dollar Bounces From the 50-Day EMA

AUDUSD Forecast Video for 08.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the session on Tuesday as the 50-Day EMA has offered enough support that market participants have jumped back into the market. That being said, the market has been sold off quite drastically as of late, and of course we have Jerome Powell speaking during the session, so that can have a lot to do with where we go next.

After all, he continues to say that the Federal Reserve is going to keep its monetary policy tight, so there’s no reason to think that his statement is going to be any different. The jobs number coming out hotter than anticipated on Friday really drove home the point that the United States has a huge battle ahead as far as inflation is concerned, and we have seen that shown over the last several trading sessions.

If you see this market breakdown below the 200-Day EMA, then it’s possibly a sign that we could drop down to the 0.67 level. The 0.67 level is a large round figure that a lot of people have been paying attention to more than anything else. If we were to break down below there, then it’s likely that we could drop down rather significantly, perhaps down to the 0.62 level. On the other hand, if the market were to turn around and take out the 0.70 level, then it’s possible that we could go look into the 0.7150 level a, where we had touched recently. Either way, I would anticipate a lot of choppiness, but the US dollar looks as if it is trying to strengthen overall in the Forex markets.

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