Currency pair Australian Dollar to US Dollar AUD/USD continues to move in growth and a bullish channel. Moving averages indicate a short-term uptrend. Prices have gone up from the area between the signal lines, which indicates pressure from buyers of the currency pair and a potential continued growth in the value of the instrument already from current levels. At the time of the publication of the forecast, the Australian Dollar exchange rate against the US Dollar is 0.7112. At the moment, we should expect an attempt to develop the growth of the pair and test the resistance area near the level of 0.7165. Further, a rebound down and the continuation of the fall of quotations to the area below the level of 0.6905.
Australian Dollar Forecast January 27, 2023
An additional signal in favor of the fall of the AUD/USD currency pair will be a rebound from the resistance line on the relative strength index (RSI). The second signal in favor of this scenario will be a breakdown of the upper boundary of the bullish channel. Cancellation of the option with a fall in the quotes of the Australian Dollar on Forex will be a strong rise in prices and a breakdown of the level of 0.7265. This will indicate a breakdown of the resistance area and continued growth of the AUD/USD currency pair with a potential target above the level of 0.7475. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and closing of quotes below the level of 0.7045, which will indicate a breakdown of the lower border of the bullish channel.
The Australian Dollar continues to rise and has already shown a five-month high due to growing consumer inflation in the country, which indicates a tightening of monetary policy by the Central Bank of Australia. Annual inflation rose to 7.8% in the last quarter of last year, the highest since 1990 and above expectations, which were at 7.5%. Such data reinforces investors’ confidence in a 25 basis point rate hike in February, although earlier market participants were confident in a potential halt to the tightening by the RBA.
Australian Dollar Forecast January 27, 2023 suggests an attempt to test the resistance level near the 0.7165 area. Further, the pair quotes continue to fall below the level of 0.6905. An additional signal in favor of the pair’s decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and a breakdown of the 0.7265 area. This will indicate a continuation of the rise in quotes with a potential target above the level of 0.7475.
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