AUDUSD Forecast – Australian Dollar Bounces From Major Support

AUDUSD Forecast Video for 22.05.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has bounced a bit during the trading session on Friday, as the 0.66 level has continued on for support. That being said, we are very much in a trading range and that’s been the case for several months. Whether or not we break out of it remains to be seen, but as things stand right now it certainly looks as if people are willing to play this 200 point range between 0.66 and 0.68. Because of this, if you have a decent range trading system, this might be a very good pair for you.

That being said, on the upside we have the 50-Day EMA near the 0.67 level that is dropping quite significantly, and could offer a bit of dynamic support. That is also in the middle of the range, so it does make a certain amount of sense that it could cause some noise as it would be “fair value.” With this, the market is likely to see a lot of choppy behavior, and as a result I would anticipate that the market will continue to be more noise than anything else.

The 200-Day EMA is also right at the top of this 200 point range, so it should offer plenty of resistance as well. If we can break above there, then the market can make the “measure to move” of 200 pips, allowing the Aussie to rise to the 0.70 level. You can also say the same thing about a breakdown below the 0.66 level, as it could open up a move down to the 0.64 level. However, it’s worth noting that there does seem to be a little bit of a “zone of support” underneath that region, and therefore it might be a bit more difficult to break down right away. I would wait for a daily close below the 0.66 level to put in the flesh short positions on.

Both of the central banks are relatively tight, so that might be why we are watching the market go back and forth. Furthermore, the Australian dollar is highly sensitive to the global growth situation as well, so obviously there is going to be a lot of external noise because of this.

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