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AUDUSD Forecast – Australian Dollar Continues to Have Upward Momentum

By:
Christopher Lewis
Published: Jun 7, 2023, 13:28 GMT+00:00

The Australian dollar has rallied again after testing the 50-Day EMA on Wednesday. At this point, the market will likely continue to see many questions asked about the 0.67 level.

Australian Dollar, FX Empire

In this article:

AUDUSD Forecast Video for 08.06.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially pulled back just a bit during the trading session on Wednesday but then turned around to bounce from the 50-Day EMA. Ultimately, the 200-Day EMA could be a major resistance barrier and even a target. However, it should be noted that the 0.67 level is an area where we have seen action in the past, and we are a little overbought. At this point, I think it’s likely that we will see a bit of a pullback, especially as there are many global concerns. After all, remember that the Australian dollar is very sensitive to global growth, as it is a commodity currency.

If we turn around and break down below the 50-Day EMA, then it’s likely that we could go down to the 0.66 level. The 0.66 level is an area where we’ve seen a lot of support in the past, so if we were to break down below that level, then it’s likely that we could go down to the 0.65 handle. The 0.65 level underneath is an area that had previously offered support, and now that we have bounced from there, one would have to think that there is a certain amount of interest in that area. If we break down below there, then it’s likely that we could go down to the 0.64 level underneath based on the “measured move” of the previous rectangle.

If we were to turn around a break above the 0.68 level above, that would change the entire attitude of the currency pair, but I think we need to pullback to build up enough momentum at the very least in order to make that move. If we were to simply go straight up in the air from here, it would more likely than not lead to some type of massive negative move eventually. After all, with the global economy slowing down it does make no sense that the Aussie would take off suddenly. Granted, I get that the RBA had a surprise interest rate hike, but at the end of the day, little growth will still work against it.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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