AUDUSD Forecast – Australian Dollar Plunges

AUDUSD Forecast Video for 16.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen rather hard during the trading session on Wednesday to crash into the area just below the 0.69 level. Whether or not we have any follow-through remains to be seen, mainly due to the fact that there is the 50-Day EMA and the 200-Day EMA indicators in this general vicinity. That suggests that perhaps we will see quite a bit of significant support, so I don’t think that a breakdown is going to be easy. However, if we do break down below there, I think it’ll be a huge move just waiting to happen.

The size of the candlestick is of course very negative, but by the end of the day we could very well bounce and head right back into the previous consolidation. The US dollar strengthening of course typically means a “risk off scenario”, but we have yet to see exactly what the Americans will do, as they will almost certainly find a way to rally risk appetite via options manipulation. This has been the game for a while now, which will run until it stops working. At this point, I think we are still range bound but it certainly is starting to look more and more like the US dollar will be favored.

Keep in mind that the Australian dollar is highly levered to the commodities markets and of course global growth. With that being the case, I think you get a situation where you have to watch a little bit of everything to get an idea as to where we are going. Simply put, if it’s “risk on”, this market will recover. On the other hand, if we get a huge run away from risk appetite, then it will plunge.

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