Yahoo Finance AUDUSD Forecast – Australian Dollar Pulls Back From Resistance
AUDUSD Forecast Video for 12.05.23
Australian Dollar vs US Dollar Technical Analysis
The Aussie dollar fell during the trading session on Thursday as the 200-Day EMA has proven to be too much to overcome. By doing so, it looks as if the Aussie will continue to see a lot of volatility in this area, but if it can break above the shooting star from the Wednesday session, that would, of course, be a very positive sign. Until then, I am suspicious about upward movement because the 0.68 level has been so reliable as resistance.
Keep in mind that there will be a lot of questions when it comes to whether global growth will continue to be possible, and of course, the Aussie needs that to thrive truly. As it is a commodity-based economy, the Australian dollar represents global growth, especially in Asia, so it all comes together quite nicely, and therefore most traders use it as a proxy for risk appetite. Breaking down below the 50-Day EMA could be a very negative turn of events, perhaps sending this pair down toward the 0.66 level.
Ultimately, this market remains somewhat range bound, so this behavior should not be a huge surprise. It makes sense that we would see choppy behavior in general, as there is so much confusion out there and of course, a lot of very concerned traders. That being said, getting some clarity may help the market try to take off to the upside again.
Regardless, it looks as if nothing much has changed, and we are simply hanging around in the same range we have been in for several months. With this, a range-bound trading system is probably best employed here until we can make some impulsive move outside this 200-point range. There is little to make that happen in the short term, so at this point, those who like range-bound markets will love the Australian dollar. That being said once we do break out of this range, it could lead to a fairly large move, and technical analysis would suggest that the “measured move” would be for the market to either reach 0.70 above or 0.64 underneath. At this point, the next couple of sessions have almost no real chance of changing anything.
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This article was originally posted on FX Empire
