AUD/USD Forecast – Australian Dollar Continues to Face Headwinds Despite Move

Christopher Lewis
Published: Apr 24, 2024, 12:58 GMT+00:00

The AUD rallied again during the session on Wednesday, showing that there is a significant amount of momentum trading. However, the Aussie is running into major resistance just above.

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Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has shown itself to be strong again during the early hours on Wednesday, but it struggled at the 50 day EMA and pulled back. With that being the case, if we can break above this level, then the 200 day EMA comes into the picture as a potential target.

That being said, it looks like we are going to struggle a little bit, and it is worth noting that the US dollar is starting to pick up strength against other currencies again. So this might end up being a selling opportunity. The 0.6450 level underneath could be a target. It’s an area that we’ve seen both support and resistance multiple times in the past. “Market memory” is something I expect to see come into play here.

With that being said, you do have to be cautious, and you do have to realize that this pair is highly sensitive to risk appetite. So therefore, you can’t get too aggressive in any one particular trade. The market is going to continue to be noisy, but at this point, I think it’s got a lot of work to do to continue the upward trajectory.

If we could rally rather significantly from here, the final target is probably 0.6650. Anything above there would almost certainly demand a complete change in the overall attitude of the Federal Reserve and its policy. At that point, you would have to be talking about Jerome Powell coming out and talking about cutting rates again. Ultimately, this is a market that I think is reflecting geopolitical concerns. And of course, the fact that the global economy seems to be stuck.

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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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