AUD/USD Forecast – Australian Dollar Looking For Buyers

Christopher Lewis
Published: Apr 11, 2024, 12:40 GMT+00:00

The Aussie is sitting near the bottom of a short-term range, looking for buyers at this point in time.

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Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has kind of hung around the bottom of the short-term range that we have been in during the trading session. The 0.6450 level underneath is a significant support area that we’ve tested multiple times and I think it is the bottom of the consolidation phase that extends all the way up to the 0.6650 level. At this point, if we break out of this range it has a measured move of 200 points, but we’ll have to wait and see if that actually happens.

After all, there’s no follow-through at the moment for US dollar strength so I think we’re just going to see a little bit of a bounce maybe to see the Aussie go back towards the 50 day EMA or maybe even the 200 day EMA above. Either way, this is a market that I think you have to play through the idea of trying to sort out balance. And I think balance is somewhere right in the middle around those moving averages.

Remember, the Australian dollar is highly influenced by risk appetite and commodities which have had a strong run but even in that environment we have not had a real big move over the last several weeks, so with that being the case, I think you just have to assume that we’re going to see more of the same. If we see signs of exhaustion towards the extremes of the consolidation area I’m more than willing to trade in the opposite direction and fade that.

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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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