AUD/USD Weekly Price Forecast – Aussie Dollar Continues to Look Noisy

Christopher Lewis
Published: May 17, 2024, 14:12 GMT+00:00

The Aussie continued to see a lot of noise during the week, as we broke out of a rectangle, and then turned around to show signs of support. Will it hold? That will be the biggest question at this point.

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Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has rallied a bit during the week, but we have since pulled back to reach the top of the consolidation area that we had been in. It’ll be interesting to see how this plays out, and I think at this point you have to be very cautious.

A move above the top of the weekly candlestick is very bullish, and it opens up the possibility of a move to the 0.69 level. But at the same time, if we turn around, fall from here and break down below the bottom of the candlestick for the week, then it’s likely that we go down to the 0.6450 level.

All things being equal, you have to keep in mind that the Aussie dollar is more or less a currency that people buy into when risk appetite is high. However, it’s also worth noting the commodity markets have done extraordinarily well as of late and that does help the Aussie. So that would be the one thing that’s really pushing it at this point, from what I can see.

That being said, the US dollar is also considered to be a safety currency, and there are plenty of things out there to be worried about right now. And so that comes into the picture as well. When you look at the weekly chart, it doesn’t take much of imagination to see some type of triangle here. And therefore, I think we have to look at the potential of a huge move. given enough time, we just don’t look like we’re ready to break out yet.

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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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