AUD/USD Forecast Video for 20.03.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied rather significantly during the trading week to pierce the 0.67 level. That is an area that previously had been support, so now it looks as if it could be resistance. This area had previously been very difficult to break through, so one would have to assume that there is still a significant amount of selling pressure in this general vicinity. The size of the candlestick from the previous week of course is very negative, and it opens up the possibility of plenty of pressure that will keep this market somewhat subdued.
The Australian dollar of course is highly levered to the commodity market and global growth as an extension of that, so with that being said I think this is a market that will eventually pull back. It’s not until we break above the 0.68 level that I would be comfortable buying this pair. At that point, it’s very likely that the market could go looking to the 0.69 level, but I’m not holding my breath for that. Breaking down below the bottom of the candlestick from the previous week opens up a flood of selling, perhaps down to the 0.64 level underneath. After that, then we could go looking to the 0.62 level.
It might be a bit difficult to trade this market from a longer-term standpoint in the meantime, but eventually we should see some type of clean move. With this being the case, I do favor the downside, but I also recognize that the markets will continue to go back and forth based upon rates, and a lot of people out there are starting to focus on the idea that the Federal Reserve may not be willing to raise interest rates. If that’s the case, we may get a short-term bounce, but there will be a lot of attention paid next week on the Fed and its interest rate decision.
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This article was originally posted on FX Empire