AUDUSD Forecast – Australian Dollar Finds Resistance

Christopher Lewis
Updated: Mar 20, 2023, 13:44 UTC

The Australian dollar has gone back and forth during the trading session on Monday, as we are testing the crucial 0.67 level.

Australian Dollar, FX Empire

In this article:

AUDUSD Forecast Video for 21.03.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially tried to rally during the trading session on Monday, as we are trying to break through significant resistance. That being said, the market has a lot to worry about at this point, as the market is going to continue to have to deal with the idea that the Federal Reserve has an interest rate announcement on Wednesday, and therefore the market is bracing for that potential noisy session.

I think at this point we have a situation where we will have to figure out whether or not we are going to see a stronger US dollar, or weaker US dollar. Quite frankly, I think it’s probably only a matter of time before we see US dollar strength, due to the fact that there is so much in the way of uncertainty out there and therefore it typically it makes quite a bit of sense that the US dollar would end up being where people hide.

At this point, it looks like the 0.68 level above it is a major resistance barrier. The 50-Day EMA sets beyond that and is starting to drop. Ultimately, I think this is a situation where you would see plenty of resistance that could come into the market. I do think that we’ve got a situation where you will see a lot of choppy and random trading between now and the Federal Reserve announcement, and there’s no real clear way to trade the market other than to assume that the pullback is going to continue.

If we see an interest rate hike, then it’s likely that the US dollar will continue to strengthen, especially if the Federal Reserve sounds like it’s going to continue to raise rates afterwards. On the other hand, if they pause, there might be an initial knee-jerk reaction to the upside, but the market won’t take too long to figure out that’s not a good sign either. Either way, I do think that the US dollar manages to strengthen from here, but at the end of the day, the only thing you can do is follow where price goes, and what price starts doing.

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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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