AUDUSD Forecast – Australian Dollar Slams Into Big Figure

AUDUSD Forecast Video for 10.02.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied quite significantly during the trading session on Thursday but seems to be struggling with the idea of breaking above the 0.70 level. We have recently seen a major selloff in the Aussie, although we bounced right from the first signs of significant support. At this point, we are more likely than not going to have to deal with the idea of what the Fed is going to do. Most traders seem to completely ignore what they say and are trying to dictate policy.

The 50-Day EMA sits near the 0.69 level, so I think that is a potential target on any breakdown. Underneath there, we have the 200 day EMA almost immediately, which makes for a massive support level, in fact it’s the one we just bounced from. However, the selling of the Australian dollar had been somewhat brutal as of late, so we have to pay close attention to whether or not there is any follow-through. If there is, it could be the beginning of more damage. After all, we bounced enough to reach the 50% Fibonacci level, but at the end of the day Fibonacci only works as much as traders believe in it.

More likely than not, I suspect that we will see a significant amount of noise, and therefore you have to look at this through the prism of volatility and perhaps short-term moves. In other words, were going to see more of the same noisy behavior that we have been witnessing for the last several months. I just don’t know when this volatility ends, so at this point you have to be very cautious with your trading account or you could be very sorry in short order.

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