Yahoo Finance AUDUSD Forecast – Australian Dollar Choppy During Wednesday Session
AUDUSD Forecast Video for 20.04.23
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has had a very choppy trading session on Wednesday, as it looks like we are getting a bit noisy just below the 50-Day EMA. 50-Day EMA is an indicator that obviously will attract a lot of attention, as the market is also near the 0.67 level. Lately, the market has been consolidating between 0.68 level on the top and the 0.66 level on the bottom, in a relatively well-defined trading session. It is also probably worth paying attention to the fact that the 200-Day EMA is near the 0.68 level, so it does provide yet another reason to think that there is a “ceiling” at that area.
Keep in mind that the Australian dollar is very sensitive to the commodity markets, and of course the idea of global growth. After all, the Australian economy is essentially built upon the idea of exporting copper, aluminum, iron, and other hard metals to places like China as the world grows or shrinks. As it looks like we are heading into a global recession, it’s difficult to imagine a situation where the Australian dollar suddenly becomes very strong. That being said, you should also keep in mind that the Reserve Bank of Australia chose not to raise interest rates recently, and it does not look like they are anywhere near changing their attitude. With this, I think we will continue to see the Australian dollar someone underperform other currencies, especially the US dollar which still has hiking to go.
Ultimately, this is a situation where I think you stay in this range, but you probably prefer the downside over the upside. However, if you are range bound trader, you could go both ways, as long as you don’t over lever your position in what looks to be like a very noisy market to say the least. The market breaking out of this range obviously could be a significant move, but in the meantime, it doesn’t look like we have the momentum to make that move easily, so therefore you need to be very cautious with trying to get too big too quick when it comes to playing any momentum swing.
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This article was originally posted on FX Empire
