AUD/USD Forecast – Aussie Continues to Look For Momentum

AUD/USD Forecast Video for 15-02-2024

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar is of course, rallied a bit during the trading session on Wednesday as we’re trying to hang around the 0.65 level. The 0.65 level of course, is an area that has been important multiple times and has been a bit of a fulcrum for price. So, it does make a certain amount of sense that we try to reach and return to that level. That being said, the market is likely to continue to see a lot of volatility, a lot of indecision, and a lot of choppiness, mainly due to the fact that there are so many questions when it comes to the overall global economy.

If we were to break down below the 0.6450 level, then it opens up a move down to the 0.63 level and you would probably see the US dollar rallying against most things. On the other hand, if the Aussie breaks out above the 0.6550 level, it then opens up the possibility of a move to the 0.66 level. This obviously would be a sign of US dollar weakness, which would probably be seen around the entirety of the currency markets, not just this particular pair.

In general, I think this remains a very sideways type of action, and I think we have to wait to see whether or not there is any real traction in either direction. This is a risk on, risk off type of proposition at this point. The Federal Reserve is expected to cut rates in 2024, so that has perhaps helped other currencies against the US dollar, but not the Australian dollar, which is not a huge surprise considering the economic numbers out of China have not been that hot.

And of course, Australia is so highly intertwined with the Chinese economy. All things being equal, I would expect quite a bit of resistance above and a bit of selling pressure that you could perhaps take advantage of, but I don’t know that I’m looking for anything along the lines of a big move in the short term.

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