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AUDUSD Forecast – Australian Dollar Bounces From Trendline

By:
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

In this article:

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.

For a look at all of today’s economic events, check out our economic calendar.

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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