Yahoo Finance AUDUSD Forecast – Australian Dollar Continues to Power Higher
AUDUSD Forecast Video for 12.06.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has been very strong again after initially falling during the day on Friday. That being said, we are now attempting to leave the 0.67 level behind. The next target to the upside is the 200-Day EMA, which sits right around the 0.6750 level. After that, then you have the 0.68 level, which is a large, round, psychologically significant figure and an area that has been important more than once.
On the other hand, if we turn around and wipe out the Friday candlestick, we consider falling toward the 50-Day EMA underneath, which is sitting near the 0.6650 level, followed by the assumed support at the 0.66 level. Recently, we have seen the Reserve Bank of Australia shock the market by raising rates, adding a little more fuel to the fire when it comes to the Aussie. With the Federal Reserve meeting next week, one would assume there will be a bit of volatility heading into the market in the next couple of trading sessions. Because of this, I suspect that we could get a little bit of a pullback, but we don’t have any signs of exhaustion to start selling into.
Furthermore, we are between the 50-Day EMA and the 200-Day EMA indicators, which of course, suggests that the market could be squeezing at the moment, and therefore think it’s probably going to continue to add to the volatility as well. In the short-term, it looks like the buyers most certainly have the upper hand, but one has to wonder whether or not people will start to hedge bets on Monday or perhaps even heading into the weekend as the Federal Reserve changing gears could be very negative.
Ultimately, I think a lot of this comes on the risk appetite as well, which one would have to assume that is a bit of a fragile input at the moment, so therefore you have to be cautious and I would not be overly aggressive one way or the other at this point, but I do think that your overall momentum is still to the upside.
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This article was originally posted on FX Empire
