AUD/USD Forecast – Australian Dollar Continues to Work For Momentum

Christopher Lewis
Published: Apr 22, 2024, 12:41 GMT+00:00

The Aussie continues to be very noisy, but at this point I think a lot of what we are seeing is a market that is trying to find its footing more than anything else.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar bounced a bit during the early hours on Monday, as it looks like we are trying to get to the 0.6450 level. The 0.6450 level is an area that previously had been support, so now it’s offering a little bit of resistance. It’s not a huge surprise that we continue to go back and forth and that being said, this is a market that I think probably remains somewhat stagnant just due to the fact that the Federal Reserve is likely to keep interest rates higher for longer.

And at the same time, you’d have to be a little cautious and have to understand that the US market is likely going to continue to see a lot of uncertainty. And with that, the Australian dollar doesn’t necessarily lend itself to be the currency everybody will want to be involved in, because quite frankly, it is built mainly on what happens with commodities, global risk, global trade, China, those kinds of things.

So as long as those are all big questions out there, I just don’t see how this pair takes off. Even if we do break above the 0.6450 level and make a recovery, the 50 day EMA would be an area that I would pay close attention to because on signs of exhaustion I would more likely than not jump on and start shorting.

This is a pair that has been negative over the last couple of weeks, and right now it looks like you’re just trying to digest some of that downward pressure. The US dollar, of course, has been the strongest currency out there and probably will continue to be for quite some time.

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

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.

Did you find this article useful?