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AUDUSD Forecast – Australian Dollar Bounces Hard to Kick Off the Week

AUDUSD Forecast Video for 16.05.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied rather hard during the trading session on Monday but remains under the 50-Day EMA. If the market were to break above there, then it’s possible that we could see the Aussie go looking toward the 200-Day EMA, which is sitting just below the 0.68 level, which of course, will be an area that people will be paying attention to, especially as the area has been so reliable as resistance over the last couple of weeks. If the market were to break above the 0.68 level, then the market could start to take off and look toward the 0.70 level.

On the other hand, if the market were to turn around and fall from here, the 0.66 level would be a significant support. The market is breaking down below there and it’s likely that the Aussie dollar will go down to the 0.64 level. In the meantime, we are more likely than not going to continue to go back and forth and therefore it’s likely that we will see plenty of range-bound trading opportunities, and therefore if you have a decent range-bound trading strategy, this is probably a good market for you.

The Australian dollar is highly sensitive to the global growth situation, which of course a lot of people are concerned about at the moment. So with this being the case, it does make a lot of sense that we continue to see volatility. Regardless, position sizing will be important in this situation, because eventually the market will break out of the range, and it could be rather explosive if it does in fact happen, as there will be a lot of traders trying to cover their positions and of course chasing the “FOMO trade.”

The market will continue to see a lot of questions about whether or not the Federal Reserve will continue to be very tight, and of course whether or not the global situation is going to improve, or if it is going to continue to get worse and traders will start running toward the US dollar for safety. Regardless, in the meantime it looks like we are trying to figure out where we’re going and therefore it will probably continue to be very noisy.

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

This article was originally posted on FX Empire