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AUD/USD Weekly Price Forecast – Aussie Continues to Chop Back And Forth

By:
Christopher Lewis
Published: Jun 14, 2024, 14:28 GMT+00:00

The Aussie has gone back and forth over the last several weeks, with this last one being more of the same. With this, the market will be looking to the next breakout to offer a longer-term trade opportunity.

In this article:

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian Dollar spent the better part of the beginning of the week, trying to break above the 0.67 level. We haven’t really been able to do that. So, at this point, I think giving up those gains makes a lot of sense. And it’s just a continuation of the sideways nonsense that we have seen for a while. The 0.6650 level is a area that a lot of people are paying attention to for potential fair value. It’s like a magnet for price.

That being said, if we were to break down below the bottom of the weekly candlestick, then we could drop to the 0.6450 level. That’s an area that has been significant support in the past, and I would expect it to be the case going forward. If we were to break above the 0.6750 level, then I believe that we would go looking to the 0.6850 level eventually. Keep in mind that this pair is highly sensitive to global growth and, of course, Asia in general.

So, we’ll see how that plays out. The US dollar strengthening from time to time has been part of the problem, but quite frankly, I think there’s a real lackluster risk appetite situation out there, and it just continues to compress this market. This is a market that makes a lot of sense right now, mainly because nobody really knows what to expect over the summer, as the markets are worried about growth, war, and inflation. Remember to watch Asia, as it will more likely than not end up being the key.

For a look at all of today’s economic events, check out our economic calendar.

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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