AUDUSD Forecast – Australian Dollar Plunges After Jobs Report
AUDUSD Forecast Video for 06.02.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has fallen hard during the trading session on Friday, as the Bureau of Labor Statistics of the United States released the January employment figures, with a scorching 518,000 as the result. Wall Street was looking for 188,000 for the month of January, so obviously this had traders caught off guard. That being said, it looks like we are still trying to respect the overall consolidation level so far, but at this point it looks like there’s been a major shot across the bow of US dollars selling.
If we break down below the lows of the Friday candlestick, I think the Aussie dollar continues to drop, perhaps down to the 0.69 level initially. This is basically where you will have the 50-Day EMA and the 200-Day EMA indicators hanging about, and an area where we’ve seen plenty of interest previously. Breaking down below that could open up quite a bit of selling, and the Aussie should plunge at that point.
The alternate scenario is that we bounce a bit, and hang out in the consolidation area that we have been in previously. That is very possible, considering that the market is so hell-bent on selling off the US dollar, despite the fact that the Federal Reserve is going to stay tight for much longer than people anticipated. It’s also worth noting that we were right around the 50% Fibonacci level, which of course attracts a lot of attention in and of itself. Regardless, I think you see choppy behavior, but I think the massive selling of the US dollar is at the very least going to slow down now.
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This article was originally posted on FX Empire
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