AUDUSD Weekly Forecast – Australian Dollar Gives Up Early Gains This Week

AUD/USD Forecast Video for 15.05.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar initially tried to rally and break above the 0.68 level. That being said, the market is likely to continue to look at this range as something that we are going to stick in, with the 0.68 level offering a significant amount of resistance, not only due to the recent price action but the fact that the 50-Week EMA sits right there as well. On the downside, we have the 0.66 level offered significant support multiple times, so we probably have a strong possibility of continuation.

However, if we were to break down below the 0.66 level, then it’s likely that the market could go down to the 0.64 level, based on the “measured move” of the consolidation area. The 0.64 level is an area where we have seen buying pressure previously, and therefore it’s likely that we would see a bit of a target, and of course, buyers jumping back into the market. On the other hand, if we were to break above the 50-Week EMA, then it’s likely that the market could go all the way to the 0.70 level, based upon that same measured move as well.

Ultimately, this is a market that continues to be noisy, and I think it’s more likely than not going to continue to focus on the short term. However, if we break out of this range, you can start thinking about longer-term trades. Keep in mind that the RBA has recently had a bit of a surprise interest rate hike, but at the same time the Federal Reserve remains very tight with monetary policy. Furthermore, if there is a lot of concern out there when it comes to the global economy, that also has people running to the greenback for safety.

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