Yahoo Finance AUDUSD Forecast – Australian Dollar Reaches 200-Day EMA
AUDUSD Forecast Video for 09.05.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied rather significantly during the trading session on Monday, as we have reached the 200-Day EMA. The 200-Day EMA sits just below the 0.68 level, an area that was a major resistance level multiple times in the past. It is now that we will see whether or not the Aussie can truly break out, or if we turn back around and show signs of weakness.
As of late, the market has been bouncing around between 0.66 and 0.68, and now that we are at the top of the range it’s worth paying close attention to what happens over the next 24 hours. The market breaking above the 0.68 level could open up the possibility of a move to the 0.70 level. On the other hand, if we turn around and fall from here, then I think a move down to the 0.67 level is very likely. This is basically where the 50-Day EMA sits, and is the center of the consolidation range. On a move below there, then we probably go looking to the 0.66 level underneath, which is where we have bounced from recently.
Keep in mind that the Australian dollar is highly sensitive to commodity markets, so therefore you want to pay close attention to them as well. Furthermore, the Australian dollar is highly sensitive to the Chinese mainland and its economy, as China is Australia’s biggest customer for its raw materials. Because of this, the market should be looked at as a gauge on risk appetite, as it works on the desire to expand economically.
Ultimately, I do think that the market is about to make a big decision, so the next 24 hours will be crucial. If we get a daily close above the 0.68 level quite handily, then I’m a buyer. If we start to sell off again, I would be a seller of the Aussie, but recognize that the downside is somewhat limited based upon those couple of levels I mentioned previously. At this point, we are going to be making large decisions soon, so the market should give you an idea as to which direction we are heading.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
