AUD/USD Forecast – Australian Dollar Continues to Fight

AUD/USD Forecast Video for 26-01-2024

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied slightly during the early hours on Thursday again, but we continue to be stuck in a overall consolidation area with the 200 day EMA offering a significant barrier. But really at this point, I think we’ve got a situation that ultimately, we are trying to form some type of bottoming pattern. Underneath, we have the 0.65 level, which is a scenario where we had seen previous resistance and it’s a large round number and has already proven itself multiple times as support.

So, with that being said, I believe that the 0.65 level is the bottom right now of the range. On the other hand, the 0.69 level above is your major ceiling in the market and could be the target for those who are bullish. In the middle we have the 0.67 level, which has been a bit of a magnet for price and in the short term I think that’s where we are trying to get.

It’s interesting that we have sold off after each rally of the last three trading sessions. So, while it does look like there’s a lot of resistance above especially between the 200 day EMA and the 50 day EMA indicators, it also shows real resilience. So eventually we may break through. And once we do, I think there will be a lot of FOMO trading so we’ll probably get to the 0.67 level rather quickly. If we were to turn around and break down below the 0.65 level, then it opens up a move down to the 0.6350 level, an area that’s been supported multiple times in the past as well.

Keep in mind that the Australian dollar is highly sensitive to risk appetite globally so therefore, as stock markets rally, typically it does the same. We can say the same about commodities and of course, you have to pay close attention to the Asian economic situation and global trade. Ultimately, the Australian dollar is highly sensitive to a lot of external factors, so we need to pay close attention to that.

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