Yahoo Finance AUDUSD Forecast – Australian Dollar Pierces 50-Day EMA
AUDUSD Forecast Video for 07.06.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has initially rallied during the trading session on Tuesday, breaking above the 50-Day EMA. The 50-Day EMA is an important technical indicator that a lot of people pay attention to, so it does make quite a bit of sense that there has been a little bit of trouble in that area. Ultimately, the market breaking above that area and being able to stay above there would be a very bullish sign, but the fact that we have seen so much in the way of selling pressure tells me that we may not have much further to go.
The 0.66 level underneath could be significant support, as it is a large, round, psychologically significant figure, but more importantly than that, the market is likely to look at this as an area that could offer a little bit of “market memory” going forward, as it was so important as far as support is concerned previously. If you break down below there, then it’s likely that we will continue to see more negativity. Ultimately, this is a market that I think continues to see a lot of overhead resistance, so given enough time then we could see quite a bit of negativity.
If we were to break above the top of the candlestick, it’s possible that we could see this market go looking for the 200-Day EMA. The 200-Day EMA and something top of the overall range, with the 0.68 level being a major resistance barrier. I don’t think that will happen, but it would obviously be part of a huge “anti-US dollar” move.
The Aussie of course is very highly sensitive to the economic situation around the world, and therefore the commodity markets will have a major part to play. After all, Australia is the major commodity producer for Asia in general, and of course will have a major influence on Australia as the Chinese economic numbers are widely followed by Aussie traders. In general, I think we continue to see a lot of noisy behavior, and therefore you will have to be cautious with your position sizing.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
