AUD/USD Weekly Forecast – Australian Dollar Gives up Gains

AUD/USD Forecast Video for 02-01-2024

Australian Dollar vs US Dollar Weekly Technical Analysis

You can see that the Aussie dollar initially tried to rally during the week, only to turn around and show signs of weakness. The market forming a massive shooting star does suggest that we are going to perhaps turn around and start dropping. This ended up forming a nasty looking candlestick that suggests that perhaps we are going to run out of momentum and perhaps have to turn around and find a bit more value, or it may mean something bigger as traders are starting to rethink the entire situation and perhaps the growth situation around the world.

The 0.69 level has been a major resistance barrier, especially that the 200 week EMA is sitting right around there as well. If we were to break down below the bottom of the candlestick, it could open up a move down to the 0.66 level, which is right around where the 50 week EMA is curling up.

The 0.65 level underneath is going to be a support level as well. It’s worth noting that the 0.69 level has been important multiple times so the fact that we turned around to show signs of exhaustion does not surprise me. If we can break above the 0.69 level, then that obviously would open up a move to the 0.70 level and then the 0.7150 level. In general, this is a market that could be seeing a bit of profit taking at the end of the year, or this could just be resistance that’s jumping back in. The next week or two will let us know.

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