AUDUSD Forecast – Australian Dollar Continues to Look Threatened
AUDUSD Forecast Video for 07.02.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has tried to recover a bit during the trading session on Monday, but as you can see, the market has struggled to hang onto those gains. It’ll be interesting to see how this play out, as the pair had been so bullish until recently, but it looks as if people are starting to price in the idea of the Federal Reserve being tighter for longer, that of course drives more money into the United States dollar. Furthermore, you have to look at the moving averages just below, because if we were to break down below the 50-Day EMA and the 200-Day EMA indicators, then it would add more technical reasoning for this pair to go lower.
On the other hand, we break above the top the candlestick for the trading session on Monday, then we will have to argue with the 0.70 level again. That being said, we have seen a massive drop, but these types of pullbacks typically do not happen in a vacuum, so really all we need to see is some type of negativity in the overall markets to bring this pair back down.
While I don’t necessarily know if the trend has changed quite yet, the reality is that there has been a major shot across the bow, and a lot of people will have been shaken by this move. The market will continue to be very noisy going forward, because quite frankly there are so many different moving pieces going on around the world right now, and therefore it should not be a huge surprise that we have such uncertainty.
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This article was originally posted on FX Empire
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