(MENAFN- Daily Forex)
During Wednesday's trading session, the AUD/USD demonstrated a significant rally, breaking free from the confines of a downtrend line and igniting the possibility of an ascent to the 0.65 level. While this development paints a somewhat bullish picture, investors must navigate various factors, including the presence of the 50-Day Exponential Moving Average (EMA) at that juncture and the pursuit of "cheap US dollars." This pursuit hinges on the Federal Reserve's stance, which remains a point of interest for traders who have long benefited from the central bank's accommodative monetary policy. Forex Brokers We Recommend in Your Region 1 Read full review Get Started A crucial juncture in this journey involves a daily close above the 50-Day EMA and the 0.6520 level. Such a move could potentially open the door to a further climb towards the 0.66 level. Nevertheless, the market's landscape is marked by stubborn resistance, as evidenced by the numerous wicks formed on the upper ends of previous candlesticks. These wicks underscore the significant hurdles the Australian dollar faces in its quest for higher ground.The outcome of the trading day holds particular importance in assessing the market's trajectory. It is essential to remember that the 0.66 level represents a formidable resistance barrier and breaching it could signal a more extended "buy-and-hold" scenario. However, caution should prevail as traders assess the evolving dynamics.Be CautiousThe next 12 hours will likely prove pivotal in determining the currency's intermediate swing trade direction. Beyond that, it is crucial to recognize the US dollar's status as a safe-haven currency, which could come into play during times of market turmoil. The Australian dollar's sensitivity to commodities and global trade renders it susceptible to sharp declines when fear grips the market.In conclusion, the Australian dollar's recent rally signals a potential shift in sentiment. However, a series of resistance levels, coupled with the broader pursuit of US dollars and the Federal Reserve's policy decisions, creates an environment of uncertainty. As Wednesday's trading session unfolds and the day concludes, market participants will gain greater clarity on the currency's path forward. Caution and 4 Potential signal: At this point, I am a seller of the AUD/USD on rallies, but the next day or two might be difficult. I would be a seller at the 0.65 level, with a stop at the 0.6590 level, and a target of 0.6275 level. Ready to trade our free Forex signals ? Here are the best forex platform Australia to choose from.
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