AUD/USD Forecast – Australian Dollar Slams Into Resistance
AUD/USD Forecast Video for 06.11.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar shot straight up the air on Friday, as traders reacted to the weaker than anticipated jobs number coming out of the United States. That being said, we are a major resistance barrier and have shot straight up in the air for 3 days in a row. Certainly, a significant amount of exhaustion could head into the markets, and if they do, then I think we’ve got a situation where the market could drop down to the 0.64 level. On the other hand, if we were to break out to the upside, the next major barrier is going to be the 200-Day EMA, followed very closely by the 0.66 level. It is at that point that I think the trend will have completely changed.
As things stand right now, even though the market looks very bullish, the reality is that we are at the top of a range that is clearly defined, so I’ll be paying close attention to this area. If we start to sell off again, then I will short this market. On the other hand, if we were to take off to the upside then I will have to slowly start building a position in the other direction. A lot of this comes down to the idea that the Federal Reserve may loosen its monetary policy quicker than expected, but let’s be honest here, the markets are now focusing on moves that last a day or 2 at best. It’s not just the Australian dollar, the market cycles are speeding up as computers control over 90% of all trading.
That being said, if we get any negative news over the weekend, I suspect that will send this market lower. On the other hand, if we see a sudden explosion to the upside, you have to pay attention to it. We are at a historically low area, so it does favor some type of an attempt at recovery. Whether or not that can actually happen remains to be seen and it is worth noting that several currencies are testing major resistance barriers, so this could be a huge dollar move across the Forex world.
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This article was originally posted on FX Empire