Yahoo Finance AUDUSD Forecast – Australian Dollar Bounces From Initial Selloff
AUDUSD Forecast Video for 18.05.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has initially fallen a bit against the United States dollar during the trading session on Wednesday. However, it looks as if we are finding a bit of support, so it does look like it is only a matter of time before we head back toward the 50-Day EMA. That being said, I anticipate that the area around the 50-Day EMA could be a bit difficult, so keep in mind that the market could remain quite choppy.
The Australian dollar has been very noisy as of late, and it obviously had a massive selloff last week. However, we are still very much in a range of 200 points, just like we have been for some time. In this environment, I think it’s very likely that we continue to see a lot of hesitation and indecision, mainly due to the fact that interest rates around the world are high, and that typically will slow down global growth. With that being the case, the market is likely to continue to try to weigh between a global slowdown, and the possibility that China is turning things around. Remember, China is one of the biggest influences on the Australian economy, so that obviously has a major outsized effect on this market. Pay close attention to Chinese economic numbers, because they can give you an idea as to what the demand for Australian goods will be.
Furthermore, the commodity markets have an outsized influence as well, so you will have to pay attention to them. From a technical analysis standpoint, if we break out of this consolidation area, the “measured move” should be 200 points. With that in mind, the market is likely to continue to go further than that, considering that the market has been wound up so tight for so long. Because of this, be cautious, but once we do get a daily close outside of this range it is likely that the move will be rather rapid and violent. Remember, markets cannot stay still forever.
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This article was originally posted on FX Empire
