AUDUSD Forecast – Australian Dollar Continues to Build Consolidation

AUDUSD Forecast Video for 03.03.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has dropped a bit during the trading session on Thursday, as we continue to look at the 0.67 level as a potential support level in the market. Ultimately, this is a market that I think continues to see a lot of noisy behavior, especially as the 0.67 level has been important multiple times. With that in mind, I believe this is a scenario where we continue to see a lot of choppy behavior, as we try to determine whether or not the Australian dollar will strengthen or weaken, or perhaps more importantly, what the US dollar is doing.

The market will continue to see a lot of noisy behavior over the next several days, but there are couple of levels that I am paying close attention to. The 50-Day EMA and the 200-Day EMA indicators above look as if they are getting ready to cross, so therefore it could offer a little bit of resistance, so any rally at this point in time will probably be somewhat short-lived. On the downside, if we were to break down below the 0.6650 level, then it opens up the possibility of a move down to the 0.65 level where we have seen a little bit of action in the past.

Keep in mind that the Australian dollar is highly levered to the Chinese economy and the overall growth pattern of the global economy as Australia is a major exporter of commodities. Ultimately, we will make a bigger move and as soon as we get that impulsive candlestick, I have no qualms whatsoever about following it. However, I do have to admit that there are enough negative factors out there to believe that the US dollar may get a bit of a boost in the short-term, perhaps even in the long term if we continue to see a lot of concerns about the global economy in general. With that being said, I believe we have a situation where you are waiting for a longer candlestick to follow. As things stand right now, it’s probably more or less going to be a back-and-forth affair, perhaps on shorter time frames.

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