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AUD/USD Weekly Price Forecast – Australian Dollar Rallies After Jobs Report

By:
Christopher Lewis
Published: May 3, 2024, 16:20 GMT+00:00

The Australian dollar has rallied at the end of the week after the jobs report came out of America smaller than anticipated. That being said, it looks like resistance is still holding true, so I’m not sure what has changed.

In this article:

Australian Dollar vs US Dollar Weekly Technical Analysis

You can see that the Australian dollar has tested the 0.6650 level yet again. And that of course is an area that will continue to be important as it has been a bit like a brick wall. With that being said, if we were to break above the 0.6650 level on a daily close, then we could go looking to the top of this triangle I have drawn on the weekly chart.

Either way, I think you have a situation where the market is probably going to continue to grind sideways because even though the jobs number came in weaker than anticipated, you have to ask whether or not that’s really enough to get the Federal Reserve to change its attitude. I don’t think it is.

I think some people are starting to look at this through the prism of something more than the last 15 minutes and perhaps we may see more sideways consolidation. I think it’s possible that we have a situation where we just don’t have any wherewithal in one direction or the other. This may end up being a very neutral pair.

That being said, it is a scenario where we have to pay attention to some of these levels, 0.6450 underneath being support and the 0.6650 level above being resistance. And then we have the trend lines from the triangle. So, I do think that there is a lot of pressure right now squeezing the Aussie. So, if and when we break out of the bigger triangle, we will have a huge move. Until then, I don’t expect really strong moves.

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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