AUDUSD Forecast – Australian Dollar Continues to Consolidate

AUDUSD Forecast Video for 19.04.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Tuesday to reach the 50-Day EMA, but it’s probably worth noting that we also have the significant amount of resistance above that could come into the picture. After all, the market has been bouncing around between the 0.66 level underneath, and the 0.68 level above. Ultimately, this is a situation where we will continue to see a lot of choppy behavior, and therefore it’ll be interesting to see where we kick off from.

You can make a bit of an argument for a bearish flag, although I do think that it is stretching it a bit to say the least. The market breaking down below the consolidation area could then send this market down to the 0.65 level. If we break down below there, then the market goes down from there. Ultimately, this is a market that I think is more likely than not going to be in a situation where overall traders will wish to fade rallies but in the short term it looks like it’s probably more consolidation than anything else.

Keep in mind that the Australian dollar is highly sensitive to the commodities markets, and of course global growth of economies. After all, if the economy starts to slow down, then it’s likely that we would see the Australian dollar suffer as a result. Keep in mind that the Australian economy is highly levered to the export of hard commodities such as aluminum, copper, gold, and the like. It’s also highly levered to the Chinese mainland economy, which does seem to be doing better, so that’s probably the one thing that is working out for Australia at the moment.

Either way, I think you get a situation where you continue to see a lot of volatility and choppiness, so I will be using those 2 levels as a bit of a guide as to where the market may go in the short term, but it still looks a bit heavy, and that the downside may eventually prevail. If it does, we could see a flush lower and a move down to the 0.65 level, perhaps even followed by the 0.64 level.

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