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AUD/USD Forecast – Aussie Falls Only to Turn Around

By:
Christopher Lewis
Published: Apr 19, 2024, 12:33 GMT+00:00

The AUD/USD pair fell hard overnight as word got out that Israel attacked Iran. However, we have seen a complete turnaround.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen pretty significantly overnight as the Israelis hit the Iranians with a few missiles and had everybody running for safety. Remember that the US dollar of course is considered to be a safety currency so it does make a lot of sense that the Aussie would struggle against it. However, since then, it’s been revealed that the attack was small at best and really didn’t cause any damage therefore it’s not much of an escalation. With that being the case, it looks like we are seeing the market correct right back to where it once was, and it was just a blip on the radar. Hopefully, you weren’t overly levered because if you were, you may have suffered massive losses.

The 0.6450 level above is an area that I think offers a significant resistance barrier as it was previous support, and therefore it’s got a lot of market memory. I think that’s an area that we will have to pay close attention to. If we can break above there, we can reach towards the 50-day EMA. On the other hand, if we start to fall, then the 0.63 level will be an area that is very important.

In general, this is a market that I think continues to see a lot of noisy behavior, but keep in mind that interest rates in the United States continue to be a situation where they are rising, and that makes the US dollar attractive. All things being equal, this is a market that is probably more prone to fall than it is to rally, but we have this handful of levels that we are watching to make our next trading decision.

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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