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AUD/USD Forecast – Aussie Continues to Plunge

By:
Christopher Lewis
Updated: Apr 12, 2024, 13:18 GMT+00:00

The AUD has fallen hard in the early hours of Friday, as we are now looking very closely at major support underneath. This is an area that we have to be very careful with to say the least.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen rather significantly during the early hours on Friday, and we have seen a major risk off move at this point in time. It’s worth noting that several other currencies have gotten hammered against the greenback. So this isn’t just an Australian dollar story. This is a US dollar story in general, I think and it is probably more about interest rates and safety at this time.

So ultimately, we do have a market that has a significant amount of support near the 0.6450 level. So we’ll have to watch that very closely. I think you also have to keep in mind that if we break down below there, it’s probably in conjunction with other pairs, relating to the greenback. The Australian dollar is a risk on currency, as it were.

So, you do need to keep that in mind also. And with that being said, the market will continue to look around the world to see, you know, how things are going in various risk assets and trade accordingly. At this point, though, it certainly looks as if we are going to do everything we can to run towards safety, and that means running towards a US dollar.

If we do break down below the 0.6450 level, then I fully anticipate that the Aussie could drop down to the 0.63 handle over the longer term. We are still technically in the massive consolidation phase that we had been in before, so not much has changed, but we definitely are going to have to pay attention to the support range underneath.

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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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