AUDUSD Weekly Forecast – Australian Dollar Looks a Bit Threatened
AUD/USD Forecast Video for 27.03.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially tried to rally during the trading week, breaking above the 0.67 level. The 0.67 level extends resistance all the way to the 0.68 level on the daily chart, as we have seen a lot of noisy behavior between those 2 levels. The fact that we fail there should not be a surprise, and it’s probably worth noting that on the daily chart we have formed a couple of shooting stars before we started to sell off yet again. In this environment, I fully anticipate that we will continue to see quite a bit of volatility due to the fact that there are a lot of global concerns right now.
Keep in mind that the Australian dollar is highly sensitive to risk appetite and of course the global economy in general. It’s a commodity currency that is well known, and therefore a lot of people will look at it through the prism of whether or not the market is trying to price in global growth or global slowdown. I think we are probably going to see a lot of back-and-forth noise more than anything else, and therefore I would anticipate this is a market that is probably going to favor short-term range bound trading more than anything else.
That being said, if we do break above the 0.68 level on a daily close, then I think you can start to look at the weekly chart for a few signs. At that point, I would anticipate that the 0.70 level would be targeted. On the other hand, if we break down below the lows of 2 weeks ago, that opens up a massive flood of selling in this market reeling down to the 0.63 level.
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This article was originally posted on FX Empire
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