AUD/USD Forecast: Continues to Look for Its Next Move
It is essential to keep in mind that the Australian dollar is highly influenced by the Chinese economy and global economic growth in general, as Australia is a significant commodities exporter.
Over the next few days, the market is expected to remain volatile, but there are two levels that demand attention. The 50-Day EMA and the 200-Day EMA indicators above appear to be preparing to cross, and this could offer some resistance, meaning that any rally at this stage is likely to be brief, especially as longer-term traders tend to believe in the “death cross” that could be forming. On the downside, if the market were to drop below the 0.6650 level, it would open the possibility of a move down to the 0.65 level, where there has been some action in the past.
It is essential to keep in mind that the Australian dollar is highly influenced by the Chinese economy and global economic growth in general, as Australia is a significant commodities exporter. As soon as there is an impulsive candlestick, the market is likely to make a bigger move, and following it should be the trade, assuming that we finally get a clean move. However, negative factors are present enough to believe that the US dollar may receive a boost in the short or long term, mainly if there are concerns about the global economy.
Consequently, the market is in a back-and-forth phase, perhaps on shorter time frames you may find the occasional setup but waiting for a more extended candlestick to follow on the daily timeframe seems to be the more intelligent way to trade this market, if we do get some type of clear signal. Keep in mind this is probably more about the US dollar than anything else, so although the Aussie has its input into this currency pair, as traders around the world continue to pay close attention to interest rates, it will certainly have a major influence on the greenback as the Federal Reserve remains “tighter for longer.”