AUDUSD Forecast – Australian Dollar Touches the Top of Channel

AUDUSD Forecast Video for 24.01.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied again during the trading session on Monday to reach the 0.70 level. It’s also the top of the channel that we had been in, so it makes a certain amount of sense that people will be paying attention to this region. Previously, we had busted through this area, only to turn around and form a bit of a shooting star. The shooting star is now being challenged, but we have some work to do before that can truly be taken out.

If we were to take out that shooting star from last week, it could open up a move to the 0.72 level, but at this point in time we are still in an area that’s going to continue to be more noise than anything else. Having said that, we have been in a nice uptrend for a while and unless people suddenly change their attitude about risk appetite, we will more likely than not continue to see this area because a bit of volatility for those in the markets. Regardless, I think you have to look at this through the prism of a potential short-term pullback, but that does not necessarily change anything from a longer-term standpoint.

If we break down below the 0.69 level, that could kick off a little bit more in the way of selling, but I would not get overly excited at this point. The market will continue to be noisy of course, because quite frankly that’s all we’ve seen for a while so I would not anticipate that it would be anything different anytime soon.

For a look at all of today’s economic events, check out our economic calendar.