AUD/USD Forecast – Aussie Dollar Continues to Chop Back and Forth

Christopher Lewis
Updated: Jun 2, 2024, 09:55 GMT+00:00

The Australian dollar has been trying to find support in the early hours of Friday. It is worth noting that the market has been very back and forth, and I think we are going to have to deal with more of that at this point in time.

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Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone bank and forth during the early hours on Friday as we continue to go pretty sideways overall, but we do look at these moving averages just below as a potential support level and I think that is something that you need to be very cognizant of.

The 50 day EMA has now started to cross above the 200 day EMA, kicking off the so-called golden cross. I’m not a big fan of this indicator, but I do know that a lot of people are. And if that’s going to be the case, it’s probably going to attract a certain amount of attention. If we can break above the 0.6650 level, then it’s likely that we could go to the 0.67 level.

Ultimately, this is a market that is somewhat susceptible to external pressures, mainly due to the fact that the Australian dollar, of course, is commodity driven and is highly sensitive to Asia. If we break down below these moving averages, then we could go down to the 0.6450 level. This would be a very negative turn of events and it would probably be more or less a risk off type of move. I think we are essentially just going back and forth overall.

So with that being said, I think this is a situation where you need to be very cautious with this pair. And quite frankly, it’s probably one of my least favorite ones right now. We are just kind of chopping back and forth trying to wreck as many accounts as possible. Really at this point I’m pretty ambivalent as it looks like it might be trying to recover and if we could take out the inverted hammer from the Thursday session that would be a very good sign but even then, we’ve got so much noise above that I think it’s difficult to overcome.

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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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