AUDUSD Forecast – Australian Dollar Continues to Face the Same Resistance
AUDUSD Forecast Video for 29.03.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied a bit during the trading session on Tuesday, as we have seen resistance again at the 0.67 level, an area where we’ve seen a lot of action in the past. In fact, just a couple of trading sessions to go we ended up forming 2 shooting stars in a row, which is typically a very bearish sign. Ultimately, it’s also worth noting that the 50-Day EMA is just above and dropping. By doing so, this is a dynamic resistance barrier that continues to be paid close attention to. In other words, this is more or less going to be a “fade the rally” type of market.
Keep in mind that the Australian dollar is highly levered to the commodity market, as Australia is a huge exporter of hard commodities such as copper, iron, and of course gold. With that in mind, it’s probably worth paying close attention to the idea that the commodity markets are highly influenced by the overall economic health of the world, with the demand for commodities being highly correlated. Furthermore, it also comes down to the health of the Chinese mainland, as Australia sends a majority of its exports to that part of the world.
If we do break to the upside, it’s not until we clear the 0.68 level that I would be impressed with the move. In that scenario, we could see the market going toward the 0.69 level where would run into further resistance. On the other hand, if we turn around and break down from here, we could see the market reaching to the 0.66 level where there is a considerable amount of support. Anything below there then would open up a bit of a trapdoor, allowing the markets to flood to the downside. The overall attitude of the markets. The slowing of choppy confusion, and I think that will remain the same here in the AUD/USD pair, with more or less an eye on the downside more than up. Either way, I’m not expecting big moves in the short term, rather more or less a range bound scenario to continue.
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