AUD/USD Weekly Forecast – Australian Dollar Takes Off for the Week

AUD/USD Forecast Video for 17.07.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has rallied rather significantly during the week, as inflation numbers in the United States started to pull back. If we do in fact see inflation drop in the United States, it suggests that Federal Reserve members will be forced to reassess their monetary policy coming out of the central bank.

The 0.69 level is an area that has been resistance in the past, and therefore it’s worth noting that market memory has come into the picture. Underneath, the market had initially tried to break down below the 0.66 level, which is also a major support level. We are essentially stuck in a bit of a range, but it certainly looks as if the market is trying to break out to the upside more than anything else, especially as traders believe that inflation slowing down could send the Federal Reserve into a little bit more of a pullback as far as monetary policy is concerned.

That being said, if the market were to break above the 0.69 level, it opens up a move toward the 200-Week EMA, which is closer to the 0.71 level. That being said, it’s very likely that we continue to see more consolidation than anything else, perhaps with more of a “buy on the dips” mentality on short-term charts. The 50-Week EMA sits right in the middle of the candlestick, therefore I think could offer a little bit of noise as well. In general, this is a situation where we continue to see a lot of volatility, but I do think that there will be a bit of a “FOMO trade” if we get above that crucial 0.69 level.

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