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AUD/USD Forecast – Australian Dollar Bounces During Tuesday

By:
Christopher Lewis
Published: Feb 13, 2024, 14:16 UTC

The Australian dollar has bounced a bit during the trading session on Tuesday, as we have seen a lot of noisy behavior with the 0.65 level as being a bit of a program for price.

Australian dollars, FX Empire

In this article:

AUD/USD Forecast Video for 14-02-2024

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially did fall a bit during the trading session here on Tuesday, but at this point in time, it looks like buyers continue to pick things up and take advantage of the 0.65 support region. I use the word region because it is exactly that – it’s just a region. There is no real defined area other than the 0.65 level being a bit of a fulcrum for price, but ultimately, I think the bottom of the support is somewhere closer to the 0.6475 handle. At this juncture, if we were to break down below the 0.6475 level, then it would be a very negative turn of events.

At that point I would anticipate that the Australian dollar goes looking to the 0.63 level. On the other hand, if we do rally from here, we could go toward the 50 day EMA, possibly even the 200 day EMA. However, the real prize for buyers will be to get above the 0.6650 level.

If we can clear that, then we can start to try to grind towards the upside, perhaps reaching 0.67 followed by a move to the 0.69 level, which was a massive swing high recently. So, with that being the case, I think you’ve got a scenario where traders continue to see a lot of volatility and a lot of uncertainty and that does make sense considering that the Aussie dollar is a risk on currency and there are a lot of concerns out there.

Remember, the US dollar of course is considered to be a safety currency at the same time, so we see a lot of concerns out there when it comes to geopolitics or global growth, we could see this pair fall. Conversely, if we see the market suddenly go into a big “risk move”, that could help the Aussie go higher. Either way, this is a market that I think continues to see a lot of volatility more than anything else.

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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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