AUDUSD Forecast – Australian Dollar Hovers Near Center of Consolidation

AUDUSD Forecast Video for 18.04.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Monday, as we are continuing quite a bit of noise, with the economic uncertainty out there. With that being the case, it’s very likely that we will continue to see bits and pieces of hesitation, and therefore I would anticipate seeing quite a bit of noise going forward. When I zoom out a little bit, the market continues to bounce around in a larger consolidation area, and as we are in the middle of it, I would not expect much going forward.

It’s also worth noting that the 200-Day EMA sits right around the 0.68 level, which is the top of the range, and at the same time we have the 0.66 level underneath that could offer support. Ultimately, I think that we will continue to go back and forth and try to figure out where we are going for a longer-term move. For what it is worth, I believe you have a situation where we are just going to go back and forth in this overall range, offering the ability to be a decent range bound market, but right now as we are essentially in the middle of it, we are in an area that you would probably consider to be “fair value.”

Keep in mind that the Australian dollar will continue to be very sensitive to the economic outlook of the globe, which of course is not necessarily bullish. Looking at the chart, if we can break above the 200-Day EMA, it’s likely that the market could go to the 0.6950 level, possibly even the 0.70 level. On the other hand, if the market were to turn around and break below the 0.66 level, then it’s possible that we could go down to the 0.64 level, possibly even the 0.62 level. Ultimately, I think the only thing that you can count on is going to be a lot of back-and-forth action, so keep your position size reasonable, but as we get to the outer edges of the range, then you have the possibility of placing a trade with a bit better odds.

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