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AUD/USD Forecast – Aussie Continues to Recover

By:
Christopher Lewis
Published: Apr 17, 2024, 12:49 GMT+00:00

The Aussie dollar rallied early during the session on Wednesday, as we continue to see a lot of volatility.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar rallied a little bit during the early hours on Wednesday to start moving towards the 0.6450 level. The 0.6450 level has been an area of contention and has also been an area that had been rather supported, I think, at this point in time.

What we have is a situation that suggests that we probably see market memory and selling pressure coming into the market. If we can recapture the 0.6450 level, then we could go looking to the 50 day EMA. On the other hand, though, if we do fall from here, then the 0.63 level is very likely to be a target. Keep in mind that the Australian dollar is highly sensitive to risk appetite, and of course we need risk on behavior to really push it higher.

It is oversold at this point though, so I think what we’re looking at here is more likely than not is going to be a bit of a bounce that gets sold into. There are plenty of geopolitical issues out there that continue to drive the value of the US dollar up, in value, and really at this point, I don’t know that that changes.

But of course, we’ll have to pay attention to the 50 day EMA as it is so widely followed and could cause some kind of technical resistance. This is a market that will eventually offer some kind of selling opportunity on signs of exhaustion, but at this point, a bounce is probably necessary for people to get involved again.

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.

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