AUDUSD Weekly Forecast – Australian Dollar Slams into the 200-Week EMA

AUD/USD Forecast Video for 30.01.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has rallied rather significantly during the trading week, slamming into the 200-Week EMA. The 0.71 level has been a bit of a barrier, but I think at this point it probably has more to do with momentum being stretched. At this point, it’s likely that we could see a little bit of a pullback, but I don’t necessarily want to get short anytime soon, because quite frankly as other currencies besides the US dollar go, I suspect that the Aussie is probably going to be one of the big winners.

Keep in mind that China is reopening, and that does drive the possibility of base metals screaming higher, and that of course is bullish for the Australian dollar as Australia supplies so much in the way of these metals to China for its construction and consumption. In other words, Australia does have quite a bit of bullish behavior behind it. However, if the US dollar starts to strengthen, that could put downward pressure on the spare, but I think if the US dollar suddenly becomes a strong currency again, the Australian dollar could fall, but I think it will fall much slower than some of the other currency such as the New Zealand dollar.

If we break above the 200-Week EMA, then the Aussie could go look into the 0.73 level, but at this point I think we are a little bit overstretched, and therefore a pullback does make a certain amount of sense, but I think it will be much more mild than many of the other weekly charts that I pay attention to.

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This article was originally posted on FX Empire

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