AUD/USD Forecast – Australian Dollar Continues to Show Bullish Pressure

AUD/USD Forecast Video for December 26, 2023

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar initially pulled back during the session on Friday, only to turn around and show signs of life. All things being equal, this is a market that I think continues to see upward momentum, as the trading world is trying to price in the idea that the Federal Reserve is going to be cutting interest rates through 2024. When you look at the technical analysis, it also tells you the same thing, as we had shot straight up in the air during the previous session, and now it looks like the market is starting to see a bit more momentum. That being said, we also have to keep in mind that the holiday season will sap liquidity, so I think given enough time we will have buyers jump in on any dip.

The 0.68 level is being tested as I record this, and I do think that eventually we will go look into the 0.69 level, which is an area that previously had been major resistance. The fact that we have seen another shot higher suggests that we are going to continue to see plenty of value hunters getting involved. Whether or not we can break the 0.69 level remains to be seen, but if we were to break above there, then the most obvious target would be the 0.70 level as it is a large, round, psychologically significant figure.

Underneath, I see the 0.67 level offering support, and if we were to break down below there, then we could go down to the 200-Day EMA, but that seems to be very unlikely. The 200-Day EMA is about to be broken above by the 50-Day EMA kicking off the “golden cross”, which is a bullish signal for longer-term traders. It does tend to be late, and it’s not necessarily something that you can bank on, but it is yet another reason the traders get long. Ultimately, this is a situation where we continue to see a lot of volatility, but it will almost certainly be to the upside. The holiday season will sap liquidity, so it may be a bit noisy and choppy, but it still looks bullish.

For a look at all of today’s economic events, check out our economic calendar.