AUDUSD Weekly Forecast – Australian Dollar Pierces a Major Barrier
AUD/USD Forecast Video for 23.01.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has been all over the place during this week, breaking above the 0.70 level. The 0.70 level of course is a large, round, psychologically significant figure, but it’s also worth noting that the market pulled back from there rather rapidly, so it looks to me like the market is trying to fight a major barrier, but whether or not he can take it out is a completely different question. After all, there are a lot of concerns around the world and one has to keep those in mind.
Keep in mind that the Australian dollar is highly levered to the risk appetite of the globe, as well as the commodity markets. Furthermore, you also have to pay close attention to the Asian mainland, especially China. With that being the case, I am looking at the 50-Week EMA underneath for a bit of a support level. If we were to break down below that level, then it’s possible that you could see the Aussie dollar drop down to the bottom of the channel that I have drawn on the chart, which of course is based more on the daily charts than anything else.
Breaking above the top of the candlestick for the week would be extraordinarily bullish, almost certainly having the market attempt to take out the 0.72 level above. The question now is going to be whether or not this is a possibility, due to the fact that there are so many problems globally. I think the market now has to decide whether or not the 0.70 level was the ceiling, or if we are going to continue to see buyers on dips.
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