AUDUSD Forecast – Australian Dollar Continues to Look Weak

AUDUSD Forecast Video for 24.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Thursday, but we remain right around a major support level. The market initially took off to the upside but continues to see a lot of noise right around the 0.6850 level, which is a minor resistance barrier. That being said, we also have the 200-Day EMA right around the same area, so that of course comes into the picture as well.

I think at this point we have to look at this through the prism of potential volatility, and therefore we also need to keep a look at this through the idea of perhaps struggling to go higher, and perhaps also fading short-term rallies. I think it’s worth noting that the next major support level is closer to the 0.67 level, which is an area that has been important multiple times. If we were to break down below there, then it opens up a whole host of even more selling pressure.

In the meantime, the Australian dollar is highly sensitive to the global economy, and of course everything that’s going on with it. After all, Australia is highly levered to China, so with that being the case it does make a certain amount of sense that we would see a lot of back and forth as people are trying to gauge the reopening in China, but at the same time we also have to worry about whether or not the rest of the world is going to follow. If it doesn’t, that does no good for Australia down the road, and eventually hurts China.

If we break above the moving averages near the 0.69 level, then it’s possible that we could go looking to the 0.70 level. The 0.70 level is an area that a lot of people will pay attention to because it is a large, round, psychologically significant figure. Ultimately, I think this is a market that has a lot of downward pressure on it, and it certainly looks as if the US dollar is trying to pick up its momentum. Because of this, I think you continue to look at this through the prism of selling rallies.

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