Currency pair Australian Dollar to US Dollar AUD/USD continues to move within the falling and descending channel. Moving averages indicate the presence of a short-term bearish trend. Prices broke the area between the signal lines down, which indicates pressure from the sellers of the currency pair and a potential continuation of the decline in the price of the instrument from the current levels. At the time of publication of the forecast, the exchange rate of the Australian dollar to the US dollar is 0.6700. At the moment, we should expect a demand for the continuation of the development of the bullish correction of the pair and a test of the resistance area near the level of 0.6715. Next, a rebound down and continuation of the fall of quotations in the area below the level of 0.6545.
Australian Dollar Forecast for May 16, 2023
An additional signal in favor of the fall of the currency pair AUD/USD will be a rebound from the resistance line on the relative strength indicator (RSI). The second signal in favor of this variant of the development of events will be a rebound from the upper border of the descending channel. A strong price increase and a breakdown of the level of 0.6745 will cancel the option with a fall in the quotes of the Australian Dollar on Forex. This will indicate a breakdown of the resistance area and the continuation of the growth of the currency pair AUD/USD with a potential target above the level of 0.6925. It is worth waiting for confirmation of the fall of the pair with a breakdown of the support area and the closing of quotations below the level of 0.6655.
Australian Dollar Forecast for May 16, 2023 suggests a demand for a test of the resistance level near the 0.6715 area. Further, the pair’s quotations continued to fall below the level of 0.6545. An additional signal in favor of a decrease in the pair will be a test of the trend line on the relative strength indicator. A strong growth and a breakdown of the area of 0.6745 will cancel the fall option. This will indicate a continuation of the rise in quotations with a potential target above the level of 0.6925.
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