AUD/USD Forecast Video for 05.06.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially fell during the course of the trading week, but only to turn around and reach toward the 0.66 level. The 0.66 level is an area where I think a lot of people will be paying close attention to, as it was previous support. The previous consolidation area was from that level all the way to the 0.68 level, and the 0.68 level would open up the possibility of more of a “buy-and-hold” type of Aussie. However, I don’t think that happens anytime soon, despite the fact that we’ve had a nice little bounce back.
A lot of shorter-term traders are going to be looking for signs of exhaustion in this area to start shorting, so it’s difficult for longer-term traders to trade off of the weekly chart. If we can break back below the 0.66 level, then I think it’s very likely that we go down toward the bottom of the candlestick for the week. After that, then we could go looking to the 0.64 level after that. In general, this is a market that I think will continue to be very noisy, and that typically favors people looking for safety, and in this case would be the US dollar.
Regardless, I think you see a lot of volatility and therefore even if we were bullish going forward, it’s going to be very difficult. From a longer-term standpoint, I have no interest in buying this pair until we get above the 0.68 level on at least a daily candlestick. In general, you need to be very cautious about your position sizing.
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This article was originally posted on FX Empire