Yahoo Finanza AUD/USD Forecast – Australian Dollar Continues to Look Threatened
AUD/USD Forecast Video for 17.10.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has initially tried to rally during the trading session on Monday, but it looks like we are going to continue to see overhead pressure. Ultimately, this is a market that I think will have to determine whether or not it is ready to continue falling, or if we are just simply going to be bouncing around toward the bottom of the recent movement. If we break down below the 0.63 level sustainably, then the market could very well drop down to the 0.62 level. That being said, we are at extremely stretched levels, so do not be surprised at all if we bounce from here and offer yet another selling opportunity.
The 0.64 level above continues to be an area of extreme importance, and more likely than not will be a bit of the ceiling in this market. The 50-Day EMA sits just above there, so that is worth paying attention to as well. A break above the 50-Day EMA allows the market to go much higher, possibly sending it toward the 0.66 level over the longer term. Obviously, the 0.65 level is also an area that you will have to be paying attention to, as it has been important as well. That being said, it seems like the 0.66 level with its 200-Day EMA indicator hanging around there makes for a nicer target if we do in fact break out.
Regardless, the Australian dollar is going to suffer at the hands of a stronger US dollar, and of course a serious concern when it comes to the Aussie is the fact that it is considered to be a “risky currency” when the global flow of funds. After all, the Australian dollar is highly levered to commodities and therefore will attract a lot of attention in and of itself. The US dollar is enjoying higher interest rates at the moment, and that will be attractive, but we also have to keep in mind that the US dollar is also considered to be a safety currency, so that allows it to strengthen throughout this entire process as well.
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This article was originally posted on FX Empire
