AUDUSD Forecast – Australian Dollar Pulls Back

AUDUSD Forecast Video for 11.01.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally during the trading session on Tuesday but has given back gains to drop below the 0.69 level again. It appears that there is a significant amount of resistance just above, and you can even make an argument that we touched the top of the channel and pulled back. If that’s the case, then we could very easily drop back down to the 200-Day EMA. Ultimately, the Aussie has been grinding away to the upside for a while now but seems to be running out of momentum.

If that is going to be the case, then sooner or later we will have to break down. I don’t necessarily think we are ready to do that quite yet, but I am keeping my eye out for a huge negative candle to perhaps suggest that’s going to happen. At this point, I think there is plenty of support underneath to keep the market somewhat afloat, so I don’t see anything on this chart quite yet that suggests we are going to change the overall pattern.

Because of this, I anticipate that we have a situation where we are more likely than not going to continue to be very choppy, but it’s worth noting that the Reserve Bank of Australia has been a bit more hawkish than many other central banks, despite the fact that Australia is so highly levered to China which has a lot of its own issues. Keep in mind that CPI numbers come out on Thursday, so if there’s a huge shock, that could send this pair reeling as US inflation numbers will continue to be one of the most important things to pay attention to.

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