AUDUSD Forecast – Australian Dollar Reaches Towards Resistance
AUDUSD Forecast Video for 20.03.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied significantly during the trading session on Friday, testing the crucial 0.67 level. This area has been important multiple times in the past, so it does make a certain amount of sense that we would see the area offer trouble. It was massive support just a couple of weeks ago, and as a result a certain amount of “market memory” has come back into the picture. In fact, the resistance above extends all the way to the 0.68 level. In other words, we need to get beyond all of that to get bullish on this market.
Furthermore, take a look at the candlestick from last week where we had a massive negative candlestick. That being said, we are testing the top of the candlestick, so one would have to think that there is a huge amount of orders in this area that could cause a bit of trouble. The 50-Day EMA sits right around the 0.68 level and is dropping quite drastically. We recently seen the 50-Day EMA break below the 200-Day EMA to kick off the so-called “death cross”, which longer-term traders take a look at as yet another signal to get short.
Underneath, the 0.6550 level seems to offer a certain amount of support, and it’s worth noting that we recently bounced from there. If we were to break down below there, then it’s likely that you could see the market drop down to the 0.64 level, maybe even the 0.63 level. In other words, it opens up a bit of flooding to the downside, which does make a certain amount of sense considering the risk appetite is all over the place right now as traders are trying to figure out where the economy is going. Remember, the Australian dollar is highly levered to commodity markets and of course mainland China, as China is Australia’s biggest customer.
If global growth is about to take a hit, then it does make a lot of sense that commodity currencies will be under pressure, and the Australian dollar is one of the first places that people will look to get short. If we were to somehow break above the 0.68 level, then it’s possible that we could go to the 0.69 level, but it would take a Herculean effort to make that happen.
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This article was originally posted on FX Empire
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