AUD/USD Weekly Forecast – Australian Dollar Rallies for the Week

AUD/USD Forecast Video for 26.12.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Aussie dollar has rallied significantly during the course of the trading week, reaching above the 0.68 level. All things being equal, this is a market that it is going to try to get to the 0.69 level, which is an area that we have seen a lot of resistance previously. That area is not only previous resistance, but it also features the 200-Week EMA. Ultimately, if we break above there, then the market could look into the 0.7150 level. The size of the candlestick for the week of course is very bullish, and now that people are out there paying close attention to the Federal Reserve and the fact that they may cut rates in 2024, it does make sense that the Aussie continues to rally.

Short-term pullbacks should end up being a nice buying opportunity, and I believe that the 0.6650 region is support, and then after that of course we have a lot of support at the 0.65 level. Keep in mind that the Aussie dollar is highly sensitive to risk appetite and of course global growth as it is a highly levered commodity currency, which is not only paying attention to commodities, but the way Asia itself is performing as China is one of the biggest customers of Australian commodities.

Ultimately, I am a buyer of dips, but I may have to drop down to a shorter-term chart in order to take advantage of that. Furthermore, the next candlestick will be the week between Christmas and New Year’s Day, and that is something that you have to pay close attention to as well. In general, I think this is a situation where buyers will continue to be in control, but the next week will be a bit odd.

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