AUDUSD : is expected to recover until port collisions will ease

16 thg 10, 2023

The recovery from the low of 105.54 is positive for the DXY index. This reduces the likelihood of a correction to the 105-104 level mentioned last week. Support for the DXY index this week is 106. If the index breaks through the 106 level, it could move higher into the 107-107.50 range this week. This also maintains our medium-term bullish view targeting the 108 level. Conversely, if the DXY index falls below the 106 level again, it will be under downward pressure. This could push the index into the 105.50-105 range or even the 104 level.

Meanwhile, the euro has fallen sharply from its high of 1.0640. This means that the recovery correction is over and we will see a broader downward trend in the medium term. The euro could fall to 1.04, a very important support level for this currency. If it dips below 104, it could drop to the 1.03 level or even below. The 1.06 level could be a good resistance level.