AUD/USD Forecast Video for 02.10.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially fell significantly during the course of the week, dropping below the 0.64 level. However, we have turned around to show signs of life again, suggesting that perhaps there are buyers underneath. That being said, it’s also a market that has to deal with a lot of volatility, and it does make a certain amount of sense that we would see indecision. If we can break above the highs of the last several candlesticks, it does open up a path to the 0.66 level, but I’m not holding my breath for this. I recognize that the 0.66 level would be a formidable barrier even if we do get there, as it has been significant support in the past.
Keep in mind that the Federal Reserve continues to be very tight with its monetary policy, and I think that will be the story here. As long as that’s the case, the US dollar will continue to be a currency that most people want to own, and with that in mind, I think that continues the way upon the Australian dollar. The Aussie is highly sensitive to gold sometimes as well, and that of course has not been any help here either. The shape of the candlestick is somewhat supportive, but you can also say the same thing about the previous week so I think what we have going on at the moment is more indecision than anything else. It does make a certain amount of sense considering that we have plunged so drastically. All things being equal, I think this is probably going to continue to be a short-term trading environment, the longer traders might choose to pass on this one.
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This article was originally posted on FX Empire