Yahoo Finance AUDUSD Forecast – Australian Dollar Continues to Test the Bottom of the Consolidation Range
AUDUSD Forecast Video for 23.05.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has gone back and forth on Monday to show signs of hesitation, as we hovered just above the crucial 0.66 level. By doing so, the market is trying to figure out whether or not it can break down below the crucial support level. Breaking down below the 0.66 level will almost certainly be a very bullish sign for the greenback in general.
Breaking down below the 0.66 level opens up the possibility of a move to the 0.65 level and then a move down to the 0.6250 level after that. The 50-Day EMA sits just above and is dropping, so it suggests a certain amount of resistance just above current pricing. By doing so, the market is likely to continue to see a lot of difficulties, but if we were to break above the 50-Day EMA, then it’s possible that we could see the Australian dollar go reaching the 200-Day EMA, possibly even as high as the 0.68 level, which has been recent resistance barrier to the consolidation area. If the market breaks above the 0.68 level, it opens up the possibility of a bigger move to the upside, perhaps allowing the Aussie to go as high as 0.70 in the relatively short term.
When you look at the markets in general, there are a lot of concerns where the Aussie comes in, as it is a commodity currency and, of course, a “risk on currency.” The US dollar course is, of course, a safety currency. Ultimately, this is a situation where we see a lot of choppiness in the short term, but we will eventually break out of this consolidation area. Until then, expect more choppy behavior, which also opens up the possibility of making trades via some range-bound system.
The Australian dollar continues to be very noisy, but eventually, we will probably have to see this market breakout in one direction. One of the big things that have been holding the Australian dollar up is that the RBA recently had a bit of a surprise interest rate hike, so at this point, it looks like the market is still trying to figure out what to do.
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This article was originally posted on FX Empire
