AUD/USD Forecast – Aussie Dollar Continues to Bounce Around in a Small Range

Christopher Lewis
Published: May 28, 2024, 12:06 GMT+00:00

The Australian dollar has rallied slightly during the session on Tuesday but has remained within the well-defined range. This market seems as if it is likely to continue to see a lot of questions as to which side will win the argument, the buyers or sellers?

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Australian Dollar vs US Dollar Technical Analysis

The Aussie Dollar on Tuesday has rallied slightly, but it is in a range of very choppy behavior, and I think we have a continuation of a certain amount of indecision. The market continues to pay close attention to the 0.67 level with the 0.66 level also being an area that matters. As we trade in this range, it makes a certain amount of sense that the 0.6650 level continues to be a bit of a magnet for price. That’s also an area that previously had been resistant, so I do think there’s a certain amount of market memory attached to it anyways. Keep in mind that the Australian dollar is highly levered to commodities, so that’s part of what’s giving it a boost, but at the same time.

We have suddenly had a serious lack of geopolitical concern. So that has helped the Australian dollar, but if headlines flare up again, that could very well send the US dollar much higher and therefore drag this pair down. I think this is a market that’s currently looking for some type of directionality and confidence, and it just doesn’t have it.

So, because of this, I think we will continue to trade in this 100 point range. Once we break out of it, then we have other places we could go to like to the upside, we could go to the 0.69 level to the downside, we could end up at the 0.6450 level. In general, this is a market that is currently short term based.

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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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