Consolidation Continues to Build on the Australian Dollar – AUDUSD Forecast

Must Read

The Australian dollar has been in a seemingly unending consolidation mode over the past few weeks and has been unable to break out of its range.

On Thursday, the AUDUSD pair dropped slightly as investors continued to keep a close eye on the 0.67 level, which could support the pair in the future.

The AUDUSD pair has been trading in a narrow range near the 0.67 level for quite some time now, and this has caused some volatility in the market. Traders have been keenly watching this level as it could be a critical area that provides resistance or support for the currency.

Yahoo Finance says, “The market will continue to see much noisy behaviour over the next several days.”

The 50-Day EMA and 200-Day EMA indicators are on the verge of a cross, which could act as a form of resistance for the Australian dollar. Any rally in the AUDUSD pair will likely be short-lived, as these two important moving averages are expected to provide some resistance.

Furthermore, the current market environment has been characterised by low volatility, making it difficult for price movements to break through significant resistance levels.

On the downside, if we were to break down below the 0.6650 level, then it opens up the possibility of a move down to the 0.65 level, where we have seen a little bit of action in the past. This could be tricky for traders as there is much uncertainty in the market right now, and any small move could have significant consequences.

Overall, it appears that AUDUSD will remain stuck in its current range until more clarity emerges about both countries’ economic data or risk sentiment takes a decisive turn, which could lead to an eventual breakout from this consolidation phase.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img