AUDUSD Forecast Video for 04.04.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has initially fallen during the trading session on Monday, but then turned around to go straight up in the air. By doing so, the market has slammed into the 50-Day EMA, causing the market to struggle with a major technical level. Keep in mind, the area between the 0.67 and 0.68 level has been extraordinarily important in the recent past, and a break above the 0.68 level would be a major victory for the Aussie dollar.
If we do break above the 0.68 level, the first target will be the 200-Day EMA, which sits just above there. Alternatively, if we turn around right here, we could see the market down to the 0.67 level again. Anything below the candlestick for this massive day on Monday would obviously be very negative, and I think at that point you would have to start selling hand over fist. There is an argument to be made for some type of bearish flag trying to be formed, but you can also still make an argument for an ascending triangle. Because of this, I suspect that retail traders will continue to be somewhat confused, and therefore we will continue to see a lot of conflicting opinions.
Keep in mind that the Aussie dollar is highly sensitive to global growth, and therefore you have to pay close attention to the commodities markets, as they are highly sensitive to the risk appetite of traders and of course the overall demand which of course goes hand-in-hand with global growth. Furthermore, the Australian dollar is highly sensitive to the Asian markets, and whether or not the economies are picking up. As things stand right now, it looks like everybody is still in that “risk on” attitude, but we have a long way to go to completely change the overall look of the chart. I suspect that we are going to see a lot of choppy behavior that frustrates most traders going forward. Ultimately, you’re going to need to be very careful with your position size because this looks like a market that could cause a lot of damage if you weren’t careful.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/audusd-forecast-australian-dollar-rockets-124021610.html