AUD/USD Weekly Forecast – Australian Dollar Recovers From Support

AUD/USD Forecast Video for 22-01-2024

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar initially fell during the course of the trading week, but it continues to look at the 0.65 level underneath as a potential support level that needs to be respected. By bouncing the way we have from there, it looks like we are doing everything we can to turn around and reach towards the bottom of the 50-week EMA and then possibly the middle of the overall consolidation area that I have marked out between the 0.65 level on the bottom and the 0.69 level on the top. Keep in mind that the Australian dollar is highly levered to global growth, commodities, Asian growth, and several other factors. So overall, we have to take more of a risk on this type of attitude to make this market rally.

That being said, I think this is a situation where the market is probably more likely than not going to go sideways and we’re just bouncing off what I think is a significant support level. I do think eventually we do rally towards the top of this range but breaking out of this 400 point range is probably a tall order at this moment.

If and when we do break out of the 0.65 – 0.69 range, it will probably be a rather significant move that you can hang onto. While it could happen sometime this year, I don’t think it will happen anytime in the next couple of weeks or even possibly months. Remember, the Australian dollar is quite often used as a way to play various hard commodities, but right now the one that really seems to be picking up steam is gold, which is more or less going to be a safety trade.

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