AUDUSD Forecast – Australian Dollar Pulls Back From Resistance Barrier

AUDUSD Forecast Video for 22.03.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back a bit against the US dollar during trading on Tuesday, as traders are going to have to start focusing on the FOMC Meeting for the Wednesday session. After all, the entire world seems to be paying attention to whether or not the Federal Reserve will raise interest rates, and by how much. Currently, there is the overall expectations that the Federal Reserve will raise by 25 basis points, but there are some out there that believe it could be 50 basis points, while others believe that they will have to stop raising rates altogether.

With that being said, the next 24 hours could be a bit lackadaisical, but it’s also worth noting that the area just above is major resistance as well, so therefore I do tend to favor the downside at this point. The market seems to have a block of resistance between 0.67 and 0.68, therefore I would be surprised to get above there before we get to the meeting itself. If we break down below the 0.6650 level, then we could drift down to the 0.66 level. I anticipate that the next 24 hours could be very sideways, so I would not put too much money to work right away. However, it’ll be interesting to see whether or not people are willing to put money to work.

Keep in mind that the Australian dollar is highly sensitive to risk appetite and commodities around the world, so that obviously will have its influence as per usual. Beyond that, risk appetite in general needs to be seen in order for the Australian dollar to really start to rally, so if we get some type a surprise move, that would obviously be very bullish for risk appetite in general. Nonetheless, most of the move that we have seen earlier in the day makes sense, because a lot of people will not want to be overly exposed to price fluctuations as there are too many unknowns. More likely than not, if you are a short-term trader, you are looking at this through the prism of range bound opportunities on short-term charts between now and the meeting.

For a look at all of today’s economic events, check out our economic calendar.