AUD/USD Forecast Video for 22.05.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has gone back and forth during the trading week, using the 0.66 level as an area of support. It is the bottom of an overall range that a lot of people will be paying attention to, just as the 0.68 level is a major resistance barrier. Furthermore, the 0.68 level also has the 50-Week EMA sitting right around that area as well, so with that being the case it’s likely that we continue to see more of the same. In fact, this could be a bit of a summer range for this pair, because sometimes during the summer, the markets get extraordinarily quiet.
If we can break above the 0.68 level, then it’s possible that we could go looking to the 0.70 level based upon the “measured move” of the consolidation area. Conversely, if we were to break down below the 0.66 level handily, then we could go down to the 0.64 level. All things being equal, this is a market that I think continues to see a lot of choppiness, but at the end of the day, the market has to deal with a lot of noise in this general area and therefore you probably need to adjust your trading position as a result.
The Australian dollar is heavily influenced by global growth, and of course China. Because of this, you will have to keep an eye on the rest of the world and see how risk appetite is coming along. With this being the case, I think that you have a perfect setup for an erratic and choppy market, just as we have seen over the last couple of months. However, once we finally break out of this range, we may be able to put a little bit more money into work.
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This article was originally posted on FX Empire