AUD/USD Forecast – Aussie Dollar Continues to Find Buyers

Christopher Lewis
Published: Apr 3, 2024, 12:41 UTC

The Aussie rallied a bit in the early hours of Wednesday and therefore it looks like we are simply bouncing around in a larger range.

In this article:

Australian Dollar vs US Dollar Technical Analysis

You can see that we initially have hold back a little bit during the trading session here on Wednesday, only to turn around and show signs of life. This is a market much like the Euro against the dollar that has stuck in a well-defined range.

In this case, we have a 200 point range with 0.6450 being a support level and 0.6650 being significant resistance and a ceiling above. With that being the case, it’s likely that we have a situation where we continue to go back and forth more than anything else and as we are heading into the non-farm payroll announcement, it does make a certain amount of sense that nobody really wants to be too short or long of the US dollar. With this, I think we will continue to drift a little bit higher over the next day or two. I really wouldn’t read too much into this other than the fact that we are still very much in consolidation and that’s probably not going to change.

The 50 day EMA above is going to be a potential resistance barrier, but considering that both moving averages are essentially flat, there isn’t a whole lot to say here other than the consolidation between these two levels probably continues, and therefore you have a situation where traders will just try to fade extremes in this range.

Remember that the Australian dollar is considered to be a risky currency or rather I should say that it is more of a currency that people buy when risk appetite is strong. And of course, the US dollar is considered to be a safety currency and that has a lot to do with what we are seeing.

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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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