AUD/USD Forecast – Aussie Continues to Look at a Range

Christopher Lewis
Updated: Mar 20, 2024, 13:01 GMT+00:00

The Australian dollar continues to trade within the well-defined range that we have been in. Because of this, I think we get more of the same sideways action.

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Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has shown itself to be somewhat lackluster during the trading session as the market participants are waiting for the Federal Reserve and their decision. All things being equal, this is a market that I do want to stay somewhat on the sidelines in the next several hours, if not days, but I am paying close attention to the 0.65 level underneath, which should be rather significant support. With this being the case, I think you’ve got a situation where traders will have to look at this through the prism of whether or not this region holds.

At the end of the session, then we might be able to make a few more serious decisions, but right now I think you have to look at this as a market that quite frankly, is probably one you should avoid. Now, at the end of the session I do believe that we have to start to ascertain whether or not the support will hold. If it doesn’t, then I think what you’ve got here more than anything else is going to be a situation where the traders will continue to try to figure out what to do with themselves when it comes to this pair because it does have a lot of external factors. The most obvious one of course is Asia, as it is a major contributor to the Aussie economy. The Chinese numbers haven’t been stellar as of late and that has put a little bit of a drag on the Australian dollar.

Above we have the 0.6650 level of offering resistance, so I suspect by the end of the day we are probably still trading in the same range that we have been in for some time. After all, there are a lot of questions out there as to what traders are going to be facing, both from an economic standpoint and a geopolitical one.

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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.

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