Yahoo Finance AUDUSD Forecast – Australian Dollar Showing Signs of Exhaustion Again
AUDUSD Forecast Video for 30.01.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially tried to rally during the trading session on Friday but gave a gains rather quickly as it looks like we are struggling to get above the 0.71 level cleanly. That being said, I don’t necessarily think that the Australian dollar is going to fall apart, but it is overdone at this point. I would not be surprised at all to see a pullback, perhaps even back into the channel that we had been in previously. The 0.70 level would obviously have a certain amount of psychological importance built into it, so you need to pay close attention to that.
Underneath, the 50-Day EMA is reaching toward the 200-Day EMA, setting up for a potential golden cross. It’s not until we break back down below that area that I would consider that the Australian dollar correction is over. After all, we do have a hawkish Reserve Bank of Australia, but then again, we also have a hawkish Federal Reserve. This sets up a very confusing situation for most traders, depending on what they are focusing on.
Because of this, it makes a certain amount of sense that we would see this as a market that needs to take a bit of a breather, and at this point it looks like we are at a reasonable place to expect that to happen. It’s probably worth noting that the US dollar will more likely than not move in tandem across assets. The US dollar has been hammered rather hard for several weeks in a row, so again, I think this is just a simple matter of the market being overdone.
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This article was originally posted on FX Empire
