AUDUSD Forecast – Australian Dollar Bounces From Trendline

Christopher Lewis
Published: Dec 7, 2022, 14:35 UTC

The Australian dollar has bounced a bit during the trading session on Wednesday, as the short-term trendline seems to be trying to hold.

Australian Dollar FX Empire

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AUDUSD Forecast Video for 08.12.22

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit from the uptrend line that we have been following for the last couple of weeks, and therefore I think we’ve got a situation where we are going to continue to see a lot of noisy behavior, and if we were to break down below the bottom of the trendline, then we could go to the 50-Day EMA. In that scenario, we could start a move down to the 0.65 level but we will have to wait and see whether or not that actually comes to fruition.

On the upside, the 200-Day EMA is holding tight near the 0.6850 level, so I think at this point it’s likely that we will see plenty of noisy behavior. With that being said, I think this is a situation where we may try to stay in this channel, but I am still looking to fade rallies at this point, because we are starting to see a lot of choppy behavior after a shot to the upside and therefore, we could be running out of resiliency.

Furthermore, the market is likely to see a lot of interest paid to the Federal Reserve next week, as we have seen quite a bit in the realm of concerns when it comes to what they say and what they are going to do going forward. I do believe that the Federal Reserve will continue to be very tight with monetary policy, so in that environment it’s likely that we will continue to see a lot of hesitation, and perhaps volatility going forward. Given enough time, we will have more clarity, but this choppiness will continue.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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