AUD/USD Weekly Price Forecast – Australian Dollar Forms a Hammer

Christopher Lewis
Published: Feb 16, 2024, 15:04 GMT+00:00

The Aussie dollar initially fell during the course of the trading week only to turn around and form a bit of a hammer at the crucial 0.65 level.

Australian dollars, FX Empire

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AUD/USD Forecast Video for 19-02-2024

Australian Dollar vs US Dollar Weekly Technical Analysis

You can see that we are trying to form a little bit of a hammer during the course of the week in the Australian dollar against the US dollar, and it’s probably worth noting that this chart looks very similar to the gold market and to the euro market. This means that perhaps we may see some dollar weakness over the next couple of weeks, and that could send the Aussie a bit higher.

The 50-week EMA sits above, and I think that’s an initial target, but after that, we could even be looking at the 0.67 level. Nonetheless, keep in mind that the Australian dollar is extraordinarily choppy at the moment, and of course, is heavily influenced by a lot of external factors, not the least of which, of course, is going to be China. The Chinese economy seems to be slipping a bit, and that does not help Australia, to say the least.

It is a risk on, risk off type of currency pair that we are looking at, with the US dollar, of course, being the ultimate safety currency. If we were to break down below the bottom of the candlestick for the week, that could open up a move down to the 0.63 level. But right now, I think it’s very likely that we will see some type of short-term bounce that traders will be willing to take advantage of. In fact, we could go all the way to the 0.69 level and not necessarily change anything.

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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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