AUD/USD Forecast Video for 08.05.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied a bit during the trading week, as we are testing the bottom of the very slack that I have marked on the chart. Furthermore, the market also found the 0.66 level as significant support, and therefore the market looks as if it is trying to stay in the same consolidation area that we have been in for a while, namely the 0.66 level on the bottom and a 0.68 level on the top. Furthermore, the 50-Week EMA sits right around the 0.68 level, so I think that comes into the picture and shows a lot of technical resistance as well.
Because of all of this, I think the Australian dollar continues to be very noisy, and therefore I think we have a situation where the market is going to continue to consolidate more than anything else. If we do break above the 0.68 level, then it could open up the possibility of a move to the 0.70 level. Keep in mind that the market is trying to figure out whether or not the Federal Reserve is going to actually stick to its guns when it comes to staying tight, and therefore I think you have a situation where market participants are fighting back and forth and therefore, I just don’t see where we get some type of clarity anytime soon.
After all, the jobs number on Friday coming out stronger than anticipated suggests that perhaps the Fed will have to stay tight, but at the same time gold prices and other metal prices heading toward China have had a positive influence on the Aussie as well. In other words, I expect to see more confusion than anything else.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire