AUDUSD Forecast – Australian Dollar Shoots Higher From Support

AUDUSD Forecast Video for 02.03.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially pulled back a bit during the trading session on Wednesday, reaching down to the 0.67 level. The 0.67 level is an area that has been supported a couple of times in the past, and we are in the midst of a noisy area that we had seen previously. When you look at this chart, you can see that we have sold off quite drastically as of late, which does make a certain amount of sense as traders are worried about tightening monetary policy issues in the United States, that of course puts the US dollar on the front foot.

Looking at this chart, the 0.67 level has now formed a “hard edge”, when you get multiple candlesticks stopping at the same level. It does look very bullish in the short term, but I also see quite a bit of resistance above in the Aussie dollar that could come into play, so you should be cautious. I will be looking for signs of exhaustion that I can start selling again, because the market has to deal with the fact that China is reopening, but it does not look very strong. Furthermore, tight monetary policy conditions around the world will slow down the global economy.

Remember, Australia is a major exporter of commodities, so that means that it is very sensitive to external economic conditions. While inflation in Australia is hotter than anticipated due to the announcement earlier in the day, the reality is that we will continue to see negativity out there so that short-term rally is something that I plan on fading.

Near the 50-Day EMA and the 200-Day EMA indicators, I think there will be plenty of sellers that is essentially near the 0.69 level, so any rally at this point in time I would like to see signs of exhaustion that we can start shorting. On the other hand, if we break down below the 0.67 level, it’s likely that we could go down to the 0.66 level, and anything underneath there could open up the possibility of a move down to the 0.64 level. I do believe that the US dollar continues to find buyers over the longer term.

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