Detailed FX Market Outlook and Analysis

AUD/USD Daily Analysis 17-MAY-2023

AUD/USD Daily Analysis

The current intraday bias for AUD/USD is essentially neutral, although there is a slight inclination towards a downward trend as long as the resistance level at 0.6820 holds strong. The consolidation pattern that began at 0.6566 could potentially have ended with three waves hitting 0.6820. If the price dips below 0.6638, a retest of the preceding low at 0.6566 might be on the horizon. A clear-cut fall below this point could indicate a continuation of the major decline originating from 0.7159, aiming for the 61.8% projection at 0.6454.

In a wider perspective, the failure to break through the 55-week Exponential Moving Average, currently at 0.6825, implies a bearish medium-term outlook. Should there be a strong drop below the 61.8% retracement level of 0.6172 to 0.7159 at 0.6549, it would enhance the chances of a re-emergence of the long-term downtrend, possibly touching the earlier low at 0.6172. This situation becomes more probable if the resistance at 0.6820 continues to hold.

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