AUD/USD Forecast – Australian Dollar Continues to Rally

AUD/USD Forecast Video for 18.12.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially pulled back just a bit during the trading session on Friday, only to turn around and show signs of life. The 0.6725 level is an area that has been resistance over the last 24 hours, and therefore I think it does make a certain amount of sense that it’s difficult to get above, but given enough time, I think this is a situation where we eventually break out to the upside. The 0.69 level above is a major resistance barrier, as we have seen a significant amount of selling pressure in the past. That being said, now that the Federal Reserve looks as if it is going to pivot, the US dollar will continue to get sold off.

The Australian dollar of course is highly sensitive to the global economy, and of course, to the commodity markets. As a general rule, you need to be watching all of that, so therefore short-term pullbacks will probably be looked at as a potential buying opportunity as it looks like the Federal Reserve is going to pivot, so therefore the US dollar will be on its back foot for a significant amount of time. Short-term pullbacks will continue to be looked at as buying opportunities as we have seen so much in the way of upward momentum, and now it looks like we are trying to break out yet again.

Underneath, the 200-Day EMA sits just below the 0.66 level and is currently higher, right along with the 50-Day EMA. All things being equal, this is a situation where the market will continue to go higher, at least until we get to the 0.69 level. I do expect a lot of volatility but that’s nothing new with the Aussie dollar. With that being said, this is a market that looks like it’s ready to take off, therefore I look at this as a “buy on the dips” type of scenario that we have to pay close attention to, and I don’t have any interest in selling this market unless of course we see some type of significant “risk off” type of situation from a global macroeconomic standpoint.

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