AUD/USD Forecast: Falls Only To Find Buyers
Date
11/17/2023 2:18:10 PM
(MENAFN- Daily Forex)
The AUD/USD
commenced Thursday's session with a downward trajectory but swiftly garnered interest from buyers, propelling it towards the pivotal 0.65 level. This level has consistently held a magnetic allure for traders. Not only does it present an attractive trading point, but it also marks the upper boundary of a recent consolidation range, indicating a zone where resistance is likely to be formidable. Given the inherent volatility of this market, exercising prudence in managing position size is of paramount importance.
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A notable cause for concern would be if the market were to breach the lower end of the candlestick from Thursday's session, as this would signal a potentially negative turn of events, potentially leading to a descent towards the 0.64 level. Notably, the 0.64 level coincides with the 50-Day EMA, making it a critical area deserving of close scrutiny. A further decline below this level could potentially pave the way for a downward journey to the 0.63 level. This would more likely than not be a situation where the USD is strengthening overall, and it is more likely than not going to be the same in other markets, not just the AUD/USD pair Cautious
Conversely, should the market breach the high point represented by the shooting star observed during Wednesday's trading session, it would open up the possibility of an upward move towards the 200-Day EMA and possibly even the 0.66 level. It's crucial to keep in mind that the Australian dollar is intrinsically tied to global economic growth and shifts in risk sentiment. Simultaneously, staying attuned to developments in the United States' bond markets is essential, as fluctuations in interest rates can exert significant influence on the strength of the US dollar, thereby impacting this currency pair.
In the current landscape, it is prudent to exercise caution and let the market's dynamics play out. The prevailing conditions suggest an impending showdown, and the wisest course of action may well be to follow the market's lead. The breakout from one of these candlestick patterns could present an appealing trading opportunity. Whether the market is poised for a turnaround and a significant upward rally following a substantial move or if we are on the cusp of a brief period of consolidation, these scenarios are likely to make themselves known rather swiftly, offering traders opportunities to respond accordingly.
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