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AUD/USD Forecast – Australian Dollar Continues to Attempt a Recovery

By:
Christopher Lewis
Published: Apr 18, 2024, 12:36 GMT+00:00

The Aussie continues to attempt a recovery on Thursday, as the market is currently threatening a significant level in the market.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has rallied a bit during the early hours on Thursdays. It looks like we are threatening the 0.6450 level. This is an area that previously has been support and resistance so a certain amount of market memory in this area makes a lot of sense. Ultimately, this is a situation where we would more likely than not see some type of decision being made.

If we can break above here and perhaps even more importantly above the inverted hammer that we had formed on Monday of this week, then I think we have a real shot at going to the 50 day EMA, possibly even the 200 day EMA. At this point in time if we were to roll over from here, the 0.64 area would be a short-term target. If we break down below there, then you are looking for a move down to the 0.63 level. Keep in mind that the Australian dollar is highly levered to risk appetite in commodities, and therefore you need to pay close attention to the idea of what the other markets in general are doing.

So, for example, if you see stock markets really starting to take off to the upside, generally speaking, not always, but generally speaking, that’s a good sign for the Aussie. On the other hand, if it’s a major risk-off move, and we most certainly have seen that over the last week or so, the US dollar strengthens. So, make sure to keep all of that in mind.

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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