AUDUSD Forecast Video for 25.01.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied a bit against the US dollar early during trading on Tuesday but has turned right back around to show signs of hesitation yet again. At this point, the market looks as if it is going to continue to see the area at the top of the channel as being a major issue, although we are above the psychologically important 0.70 level. A lot of this will come down to the idea of China reopening, which of course helps Australia as China is the largest consumer of Australian mining products.
If we break back down below 0.70 level, I suspect that this will end up being a situation where the market will pull back into the cluster that extends all the way down to the 0.6880 level. The 200-Day EMA sits right around that area as well, and the 50-Day EMA is rising toward it, getting ready to form the so-called “golden cross.” That being said, it is a secondary indicator at the very best, and more likely than not probably something that should be thought of as a tertiary indicator.
If we can break above the 0.71 level, that will release the Australian dollar to go another 100 pips, perhaps even rise all the way to the 0.75 level. It seems as if a lot of people believe that the US dollar has peaked, and if that’s the case then obviously it will have its influence here as well. Ultimately, we are a little stretched so a pullback does make a certain amount of sense, although a massive meltdown seems unlikely.
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This article was originally posted on FX Empire