AUD/USD Forecast – Aussie Continues to Go Back and Forth in Confusion

Christopher Lewis
Updated: Jun 2, 2024, 09:56 GMT+00:00

The Aussie had been very bullish for several weeks, but at this point it looks a bit confused, as to where it should be.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar rallied just a little bit during the early hours on Thursday, as we continue to see a lot of noisy behavior. The 0.6650 level is in the area that previously had been significant resistance and has even been support multiple times in the past.

We are now looking at this as a situation where we are going to try to figure out where to go next, but that should not be a huge surprise considering everything that’s going on around the world. After all, the Australian dollar is considered to be a risk on type of currency, while the US dollar, of course, is considered to be a safety currency.

In general, this is a scenario where we are looking at the 50 day EMA crossing above the 200 day EMA and therefore kicking off the so-called Golden cross. Really, that’s a signal that tends to be a little too late but at the end of the day some people will pay close attention to it. If we were to break above the 0.6733 level, then I think you’ve got a shot at breaking out for a bigger move to the 0.6850 level.

If we break down below the last couple of candlesticks and perhaps even those moving averages, as I just mentioned, we could drop down to the 0.6450 level. However, this doesn’t seem as likely at the moment, and therefore I think we could be looking at this as an outlier, at least at the moment.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?