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AUDUSD Forecast – Australian Dollar Bounces Slightly After an Initial Decline

AUDUSD Forecast Video for 19.05.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially fell a bit during the trading session on Thursday but did find a little bit of support underneath at the 0.6640 level, an area that has been someone important over the last several days. Furthermore, it is getting close to the bottom of the overall consolidation area that the market had been in, with the 0.66 level offering a significant support level. On the upside, there are several barriers to consider before trying to buy this market. However, you can make an argument for a return to the top of the larger consolidation area, which means that the market could go as high as 0.68 and still not change anything.

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That being said, on the way up you will have to deal with the 50-Day EMA, which is close to the 0.67 level, and an area that could cause a bit of resistance. Breaking above there then opens up the possibility of a move to the 200-Day EMA and then eventually the 0.68 level, the area that has been the top of this overall consolidation.

I do think that the market probably continues to consolidate more than anything else, if for no other reason than there have been a lot of questions about the global economy, and therefore it’s difficult to imagine that a lot of risk on behavior will suddenly appear. Regardless, this is a market that I think will continue to be very noisy, and you have to keep that in mind when taking risks. Position sizing and stoploss placement will be crucial, and most traders will look at this through the prism of a range-bound market.

However, once we break out of this range, you could see a 200 pip move rather quickly as there has been such hesitation to get aggressive in this market as of late. You should also keep in mind that global growth concerns heading into the traditionally slower summer season may keep this market somewhat compressed over the next several weeks. That being said, eventually the market has to had in one direction or the other.

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

This article was originally posted on FX Empire

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