AUDUSD Weekly Forecast – Australian Dollar Has Rocky Week

AUD/USD Forecast Video for 13.02.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar initially tried to break above the 0.70 level for the week, but failed and now has formed a bit of an inverted hammer. That being said, there should be a significant amount of support just below the corner, so I think we are about to enter a very choppy couple of weeks. Nonetheless, if you break down below the 0.68 level, that should open up the possibility of a big step lower. The 50-Week EMA sits just under and should be an important level of support.

The Aussie continues to be attached to Asia, and of course China. As China reopens, people believe that the Australian economy should be a beneficiary of that surge in demand. If so, then the Aussie should rise, at least in theory. The currency is volatile in these types of conditions, and therefore you will need to be cautious with position sizing. However, once we get out of this range, I expect the Aussie to trend quite nicely. The 50% Fibonacci retracement has offered resistance on a massive bear market rally, and now we are rolling over. This suggests that the US dollar is going to strengthen going forward, as we see this across the board in Forex world.

The US dollar is a safety currency that a lot of people will be running towards if there is a sudden shock to the system, and certainly there are a lot of moving pieces. It is because of this that I believe that a breakdown is eventually coming. When that is, unfortunately I cannot say, but it looks like the US dollar is going to strengthen a bit against most currencies, including this one.

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