AUDUSD analysis 18.05.2020

The Australian dollar rose during the Asian session against the US dollar amid the scarcity of economic data by the Australian economy earlier this week and in the wake of the interview given by Federal Reserve Governor Jerome Powell with the program "60 minutes" on "CBS" and on the cusp of developments and economic data On Monday, the US economy is expected to be the largest in the world.

At exactly 03:21 am GMT, the Australian dollar pair rose against the US dollar by 0.31% to 0.6446 levels compared to the opening levels at 0.6426, after the pair achieved its highest level during the trading session at 0.6453, while achieving the lowest at 0.6412, knowing The pair started the trading session on an upward price gap after it concluded the trading last week at 0.6413 levels.

We have just followed the warning of Federal Reserve Governor Jerome Powell in the "60 Minutes" program that the economic downturn may continue until late 2021, explaining that his country's economic downturn may reach between 20% and 30% "easily" during the current quarterly quarter with Coronavirus outbreak, adding that he expects "the economy to recover steadily during the second half of this year," as long as America avoids "the second wave of the virus."

Powell noted that "it is very important to avoid this. Because it will be damaging to the economy and also to the confidence of the public," explaining that "assuming there is no second wave of the virus, I think you will see the economy recover steadily during the second half," adding that "in order for the economy to fully recover A vaccine must wait, "Powell also called on US lawmakers to pass more economic incentives and relief aid, while telling him that unemployment rates could peak at 25%.

Otherwise, investors are currently waiting for the US economy to reveal housing market data with the release of the housing index reading by the National Association of Home Builders, which may reflect a rise to $ 35 compared to 30 last April, and we would like to point out that the Democrats passed last Friday In the House of Representatives a stimulus of $ 3 trillion, but it is not expected that the stimulus will pass the Republican-controlled Senate

Technical analysis

The Australian dollar versus the US dollar pair returns to test the pivotal support 0.6407 and maintains its stability above it until now, accompanied by the arrival of the stochastic to the oversold areas in the sale, waiting for the price to stimulate the resumption of the expected bullish direction for the next period, which begins its goals at 0.6550 and extends to 0.6685 after exceeding the level the previous.

Therefore, we will maintain our positive expectations provided that the price maintains its consolidation above 0.6407.

The expected trading range for today is between 0.6380 support and 0.6500 resistance.

Expected trend for today: bullish.