AUDUSD Forecast – Australian Dollar Sells Off on Wednesday

Christopher Lewis
Published: Mar 29, 2023, 13:39 GMT+00:00

The Australian dollar has pulled back from the crucial 0.67 level, an area that has been important more than once.

Australian Dollar, FX Empire

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AUDUSD Forecast Video for 30.03.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back during the trading session on Wednesday as the 0.67 level continues to cause major headaches for buyers. The area has been important support and resistance barrier multiple times over the last several months, and most certainly in the recent past. I think at this point, we have a situation where the market is going to continue to struggle to get above there, and even if it does, it looks to me as if there is a barrier of resistance that extends all the way to the 0.68 level.

That’s an area that I think would be very difficult to break through, but if we did it could open up the possibility of a move to the 200-Day EMA. The 200-Day EMA is currently sitting right around the 0.6850 level and dropping. Nonetheless, I don’t know that it comes into play as a major barrier, but that will probably be a little bit of a hiccup from there. Above there, then we have the 0.69 level that really starts to look difficult to get above.

On the downside, if we do break down below the 0.66 level, then it’s likely that we could drop pretty significantly from there, perhaps down to the 0.64 level. The 0.64 level then opens up the possibility of 0.62, but I’m not looking for some type of meltdown. I think we are trying to settle into some type of range, but it will be interesting to see how this plays out. I suspect this is all going to come back to the idea of whether or not there is going to be global growth, which is in a state of flux at the moment.

The Australian economy is highly dependent on exports, so it should play out the same way in the Forex markets as well. As we see so many concerns around the world, the US dollar will continue to have a bit of a bid, and therefore it is probably going to be easier for the market to fall than to rise over the longer term. Regardless, I would anticipate quite a bit of choppy behavior.

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

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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