AUD/USD Forecast – Australian Dollar Continues to Look Higher

AUD/USD Forecast Video for 27-12-2023

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially pulled back just a bit during the trading session on Tuesday, only to turn around and show signs of life again. The 0.68 level is an area that a lot of people will be paying close attention to, as it is an area that previously had a lot of resistance above. All things being equal, the market is likely to continue to see a lot of volatility, and any type of short-term pullback at this point probably gets a lot of buying opportunities present themselves due to the fact that we have a certain amount of “market memory” in that area.

The 0.69 level above is an area that has previously been resistant, and I think that continues to be the case, as it is at the top of the overall consolidation area. If we can break above the 0.69 level, then it’s likely that we will continue to go even higher, and I do think that it would take a certain amount of momentum and conviction to get above there. If and when we do, then the market does look to the 0.70 level, which of course is a large, round, psychologically significant figure.

Underneath, the 0.67 level is an area that I think you see a lot of support, as it had been previous resistance. Furthermore, we also have the 50-Day EMA getting ready to turn around and break above the 200-Day EMA, kicking off the so-called “golden cross.” This is an indication that longer-term traders tend to pay close attention to, and therefore longer-term traders may look at this as a sign that we are ready to go higher.

Ultimately, this is a situation where people are trying to do everything they can to get involved to the upside as the US dollar loses strength against most currencies. After all, interest rates in the United States have been dropping, which directly correlates with the way this pair has been moving, and therefore I think you need to pay attention to the 10 year note more than anything else.

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