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AUDUSD Forecast – Australian Dollar Gives Up Early Gain

By:
Christopher Lewis
Published: Nov 25, 2022, 13:58 UTC

The Australian dollar initially tried to rally during the trading session on Friday but has poured a bit of a double top.

Australian Dollar FX Empire

In this article:

AUDUSD Forecast Video for 28.11.22

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially tried to rally during the trading session on Friday but has given back quite a bit of the gain to end up forming a relatively negative candlestick. At this point, we have to wonder whether the market is forming a major double top, or if we are going to pull back into consolidation? That is still an open question but it’s obvious that there are quite a few concerns out there, and as a result it does make a certain amount of sense that the Australian dollar struggles in this general vicinity. After all, the 0.67 level is an area that a lot of people paid attention to for quite some time. It is a major level on long-term chart, so you need to keep that in the back of your head.

The 50-Day EMA sits right around the 0.66 level, and is rising, meaning that it could offer a bit of support. Nonetheless, it also makes for a nice target for those willing to short the Aussie. Interest rates in America have been falling, but at the same time there are a lot of concerns out there about the way economies are performing. If we do in fact see a switch from interest-rate differential to economic growth, the United States dollar will find a fresh set of reasons to go higher.

On the other hand, if we do take off to the upside, we could see the Aussie dollar rally all the way to the 200-Day EMA, near the 0.6850 level. Anything above there then starts the process of turning the entire trend around, perhaps opening up quite a bit of buying pressure.

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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