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AUD/USD Forecast – Australian Dollar Falls Toward Support on Friday

By:
Christopher Lewis
Published: May 17, 2024, 13:39 GMT+00:00

The Aussie dollar has fallen during the early hours on Friday to reach a previous resistance barrier, thereby perhaps showing a bit of “market memory” if it holds as support. Obviously, this is going to be a pivotal trading session for the Aussie going forward.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen during the trading session on Friday to reach down towards the 0.6650 level. This is an area previously that had been significant resistance. So, it should, at least in theory, be significant support at this point. This could be a classic breakout, pullback, retest, and then continuation pattern, or it could be like we had seen last month, where the Australian dollar broke out of its consolidation and then turned right back around to fly through it again. The Friday session will be crucial, and we’ll just have to see how this plays out. Ultimately, I think a lot of decisions will have to be made over the next 24 hours. Keep in mind that the greenback is often used as a “safety currency” as well.

The 0.6650 level is crucial so depending on which side of this we close on, we could see more buyers or sellers come into the market. If we break down from here, the 200-day EMA is near the 0.6575 level and therefore I think that could be an initial target but if we were to break down below there, then the 0.645 zero level underneath would be a major target. On the other hand, if we turn around and break above the 0.67 level, then we probably go looking to the 0.6850 level but right now as I look at the chart we’ll have to wait and see whether or not we get that momentum, it certainly looks as if we are struggling with it earlier in the session.

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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.

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