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AUDUSD Forecast – Australian Dollar Rallies Again

AUDUSD Forecast Video for 09.06.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied again during the trading session on Thursday, reaching the 0.67 level. The 0.67 level is an area that causes quite a bit of noise on Wednesday and has been important multiple times in the past. When you look at the chart, the 0.67 level is essentially the middle of the overall consolidation area between 0.66 on the bottom and 0.68 on the top. We did break down below the bottom of that area, so it does suggest that the negativity will be a major factor in the future.

The Reserve Bank of Australia recently had a surprise interest rate hike, and that’s part of what we’ve seen here. That being said, I don’t necessarily know whether or not this move will continue because we have seen a lot of negative headwinds out there for the economy, and although the RBA did that surprise rate hike, quite frankly it’s unlikely that we will continue to see a lot of bullish behavior because there are so many concerns out there that will weigh upon commodity currencies like the Aussie. With that being the case, I think you’ve got a situation where we will eventually break down.

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The 0.66 level underneath being broken to the downside will likely open up the possibility of a much bigger move down to the 0.65 level, possibly even the 0.64 level. The 0.64 level is an area that a lot of people will be paying attention to because it is the “measured move” of the consolidation rectangle we have previously been in.

On the upside, if we were to break above the 200-Day EMA, it opens up the possibility of a move to the 0.68 level above. The 0.68 level is an area that previously had a lot of resistance, so I will be paying close attention to that area, and if we were to break above that level is likely that the market will continue to go much higher, with a target of at least 0.70 as it would show a complete breakdown in the greenback. While I don’t necessarily expect to see that, you always have to keep both sides of the trade in the back of your mind.

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

This article was originally posted on FX Empire

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