(MENAFN- Daily Forex)
The aud/usd encountered a challenging session on Wednesday, reflecting the prevailing market troubles and uncertainty. The market's direction will largely depend on whether we witness a shift towards a "risk -off" sentiment. If a major leg lower ensues, and the market establishes a fresh swing low, the Australian dollar can decline toward the 0.64 level. Given the current circumstances, with significant concerns worldwide, it is likely that sellers will continue to dominate this market. Advertisement got a position to try? don't wait! trade aud/usd now On the other hand, if the market experiences a turnaround, it could reenter the previous consolidation area. It's worth noting that the 0.66 level has been breached multiple times recently. Unless substantial bearishness prevails, there is a possibility of a reversal. However, considering the prevailing global concerns, a breakdown will probably occur in due time. It is essential to closely monitor commodity markets, as they significantly influence the Australian dollar, Australia's primary export.China plays a crucial role in this context, as its demand always has a substantial impact on the Australian economy. Even if the market rallies from its current levels, significant resistance is expected, particularly near the 50-Day Exponential Moving Average (EMA) around the 0.67 level. The market is characterized by notable volatility, offering potential opportunities for traders. A bearish bias is currently favored for the Australian dollar, but this does not imply an immediate steep decline. Exhaustion is likely to enter the market during any short-term rallies. The AUD is Facing Significant ChallengesConsidering the circumstances, it will be challenging for the Australian dollar to gain upward momentum. However, traders must remain vigilant and adaptable to market dynamics, as volatility can present various opportunities. While shorting the Australian dollar appears more favorable, exercising caution and recognizing the potential for temporary upside movements is crucial. The market is likely to struggle in its quest for sustained upward momentum. At the end of the day, the Australian dollar faces significant challenges and potential downside pressure. The market's direction depends on whether a "risk-off" sentiment prevails. A fresh swing low could lead to a decline toward the 0.64 level. Meanwhile, a potential turnaround could allow reentry into the previous consolidation area. The Australian dollar's performance is closely tied to commodity markets, with Chinese demand playing a critical role. Expect minor resistance near the 0.67 level. Overall, the market exhibits volatility, offering opportunities for traders. While a bearish bias is favored, short-term rallies may bring temporary relief. However, sustained upward momentum remains challenging for the Australian dollar.Ready to trade our daily forex analysis ? Here's a list of the
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