AUDUSD Forecast – Australian Dollar Continues to Find Support

AUD/USD Forecast Video for 23.06.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar fell during the trading session on Thursday to test the 200-Day EMA. By doing so, the market looks as if it is trying to find some support, and therefore I think you’ve also got a situation where the market is likely to turn around and continue to try to retire. If we can take out the high of the past two trading sessions, that opens up the possibility of a move to the 0.69 level, possibly even the 0.70 level.

If we were to break down below the bottom of the candlestick from the Wednesday trading session, then it is likely that the market would drop rather significantly. In that scenario, the market could drop down to the 50-Day EMA, perhaps reaching the 0.67 level. The 0.67 level then opens up the possibility of a move to the 0.66 level. All things being equal, this market will continue to find people jumping into the Aussie dollar to take advantage of the “FOMO trading” that’s out there and risk assets. Ultimately, I do think that people are looking past quite a bit, but at the end of the day, I think given enough time, we could see quite a bit of noisy and dangerous trading. The market is going to continue to pay close attention to Asia and, of course, whether or not global risk assets like stock markets continue to find a bid.

The Reserve Bank of Australia has recently given the market a shock by increasing interest rates by 25 basis points when it was expected to hold still. Because of this, the market will likely continue to see a lot of volatility, and therefore I think we’ve got a situation where we could go sideways. Still, it’s probably worth noting that the impulsivity of the previous week probably has a little bit of follow-through. Either way, I think you need to be cautious with your position sizing, as the market is going to continue to see a lot of choppy behavior. Because of this, the market is likely to continue to see a lot of noise so therefore keep your position size small as the market tries to figure itself out at this point.

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