AUD/USD Weekly Price Forecast – Aussie Continues to Look Neutral Overall

Christopher Lewis
Updated: Jun 2, 2024, 09:55 GMT+00:00

The Australian dollar has been negative for the week, but at this point it still remains somewhat sideways in its overall attitude. Because of this, I think you have to look at this through the prism of a market that is trying to sort itself out.

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Australian Dollar vs US Dollar Weekly Technical Analysis

Taking a look at the weekly chart of the Australian dollar we see that we have wiped out the gains from the previous week, essentially. We are still paying close attention to this downtrend line that’s above the 0.6650 level, but at the same time, we’re not exactly breaking down. I think this is a situation that is just going to see a lot of choppiness this year in the Forex markets.

I think many of the major currency pairs, the Australian dollar against the US dollar included, are simply lost. They don’t know what to do because central banks around the world are about as clear as mud as to what they are doing. So with that and the whole hostage taking of the Federal Reserve of the market, people are starting to question what is going to happen with interest rates in America.

So, we don’t really have any clarity at this point, and it makes a certain amount of sense that we continue to see noisy behavior. If we were to break out above the 0.6750 level, then it opens up a move to the 0.6850 level. But at the same time, if we break down below 0.66, then we could drop down to the 0.6450 level. All of this would just be a continuation of the consolidation that we’ve seen for almost a year and a half now. It’s a pretty neutral pair at this point, and think it favors a shorter-term trading plan. Longer moves are struggling for clarity.

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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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