AUD/USD Forecast – Aussie Continues to Look For Its Bottom

AUD/USD Forecast Video for 09-02-2024

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has slipped during the trading session on Thursday as it looks like the U.S. dollar is starting to cause havoc across the world. That being said, I think this is a situation where we are closer to support than we are to resistance, so given enough time, I would anticipate a little bit of a bounce.

I think the 0.65 level will continue to be an area where people look at it as fair value and therefore, it’s not a huge surprise to see that this market may consolidate further. However, if we do continue to break down from here, you could look at the 0.6350 level as a potential support barrier and target that being broken to the downside would open up pretty significant selling pressure, perhaps down to the 0.60 level. On the upside, if we can break above the 0.6550 level, then I think the 0.66 level gets targeted where both the 50 and the 200 day EMA moving averages converge. Anything above there gets this market very bullish. And I think at that point in time, the Australian dollar would suddenly be very strong.

That would probably coincide with US dollar weakness across the board as well, as it would take quite a bit of effort to make that happen. Ultimately, this is a market that I think is trying to sort out what to do with the idea of the Federal Reserve cutting rates, but at the same time, the possibility of the global economy shrinking definitely has people worried about commodity currencies such as the Australian dollar.

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