AUDUSD Forecast- Australian Dollar Continues to Trade In a Channel
AUDUSD Forecast Video for 09.12.22
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has initially fallen during the day on Thursday, but then turned around to show signs of life again. At this point, it looks as if the market is trying to continue the overall push to the upside, with the idea of the market being between the 50-Day EMA underneath and the 200-Day above causing a bit of a squeeze. Typically, when you see a currency pair trade between these 2 moving averages, there is a big move just waiting to happen.
The 0.67 level has been important for some time, and it’s worth noting that the market bouncing from that level should not be ignored. However, we are in a bit of a channel at this moment, so therefore I think you probably continue to see a little bit of bullish behavior, but I also believe it is somewhat fragile, and you could even make the argument that we are trying to form a little bit of a rising wedge before it’s all said and done. After all, we shot straight up in the air, and now are grinding back and forth.
It does make a certain amount of sense that we would see the market struggle, due to the fact that the Australian dollar is highly levered to the commodities markets, and of course Asia in general. Both of those need to do well, and of course global growth in order to push this market higher over the longer term. If we turn around and break down below the 50-Day EMA, then it’s possible that the market goes down to the 0.65 level. On the upside, if we can clear the 200-Day EMA, then the 0.70 level might be possible.
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