AUDUSD Forecast Video for 24.05.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has fallen a bit during the trading session on Tuesday, as we continue to see the 0.66 level underneath offer a certain amount of support. It has been an area of significant support going all the way back to February, just as we have seen the 0.68 level above offers significant resistance. For the last several months we have been banging around between these 2 levels, and as things stand right now it looks like we are going to be more of the same.
If we were to turn around and break out of this range, it gives us a 200-point range based upon a measured move. If the market were to break down below the support level, then I think we are looking at a move down to the 0.64 level. On the other hand, if we were to turn around to break above the 0.68 level, then it is possible that we could go looking toward the 0.70 level.
All things being equal, this is a market that I think is trying to figure out where risk appetite is going, especially as the Australian dollar is so highly levered to the commodity markets, and of course global growth in general. With that being said, I think this is a market that will continue to be very noisy, and I certainly favor the downside considering where the economy seems to be going. However, until the market breaks out of that overall range, it’s difficult to get excited about placing any particular trade, so therefore I will let the market dictate when I am buying and selling.
As things stand right now, we are in an area that could cause a bit of a bounce and offer a short-term buying opportunity. Looking at this chart, we are definitely threatening the bottom, but we have not punched through it quite yet. With this being said, a lot of this is going to be noisy, and therefore you need to keep in mind that risk management will be crucial in this type of situation.
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This article was originally posted on FX Empire