AUDUSD Forecast – Australian Dollar Plummets Into the Weekend

AUDUSD Forecast Video for 27.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally during the trading session on Friday, but then felt rather hard during the trading session to show more weakness. Keep in mind that the world continues to worry about global growth and is starting to come to grips with the idea that the Federal Reserve is going to remain tight for longer than anticipated, despite the fact that the Federal Reserve has flat out told everybody how long it was going to remain tight at the very minimum. This is what happens when you have easy money for 14 years, people have no idea how to behave in a competitive market. We are now starting to see the realization that the Federal Reserve is going to remain tight for the entire year, as bond yields have risen in several markets across the United States.

The 0.67 level underneath should be a significant amount of support, as it is a large, round, psychologically significant figure and an area where we’ve seen some noise in the past. Because of this, I do think that’s the target, and eventually we will get there. Short-term rally should continue to offer selling opportunities in a market that quite frankly looks listless. The 200-Day EMA sits near the 0.69 level, with the 50-Day EMA getting ready to break down below there. Ultimately, the market recently had pulled back from the 50% Fibonacci level after a smashing rally from the 0.62 area.

It now looks like a longer term downtrend is starting to reassert itself, and it’s very possible that we would see that happen over time. It doesn’t necessarily mean that the market is going to get there overnight, but it certainly looks like it would be an area of interest. As far as buying is concerned, I would have no interest in doing so until we break above the 0.69 level at the very least, and even then, I would have to look at the overall fundamental picture to make that decision. Currently, this is all about the US dollar and interest rates in America more than anything else.

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