AUDUSD Forecast – Australian Dollar Continues to Power Higher
AUDUSD Forecast Video for 27.01.23
Australian Dollar vs US Dollar Technical Analysis
At this point, it’s obvious that the Australian dollar is breaking out, and it probably has its sights on the 0.72 level rather soon. Ultimately, I have no interest in shorting this market anymore, although I’m not necessarily sold that we are suddenly going to see the disintegration of the US dollar. After all, we have the Federal Reserve meeting next week that could throw monkey wrench and everything, but in the short term it’s obvious that this will remain a buy on the dip type scenario.
The 10 year note in the United States did try to spike early in the day as far as yield is concerned, but that pressure has abated, and now it looks like yields or dropping in the US again. If that’s going to be the case, that should continue to strengthen the Australian dollar going forward. Alternatively, this is a market that that could be very noisy, so you have to be very cautious. If we turn around and break down back into the channel, then we may have a little bit of trouble ahead. That being said, the market is likely to see a lot of buyers on dips anyways, so I think it’s probably only a matter of time before we turn around and rally.
I think the real problem facing the Australian dollar will be Jerome Powell next week, and whatever he says. There might be a little bit of profit-taking if we get closer to it, perhaps early next week, so I would not expect a major shift in attitude, at least not until the Fed comes and goes.
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