AUD/USD Forecast – Australian Dollar Continues to Reach Same Barrier
AUD/USD Forecast Video for 30-01-2024
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied early on Monday again, as we have seen multiple times over the last several sessions, the market is attracted to the 200-day EMA. However, for the last handful of sessions, we have seen this market pull back from this area later in the day, so we’ll have to wait and see whether or not that remains the pattern. Quite frankly, the Aussie can’t seem to get overly momentum driven, but it certainly looks like a lot of people are showing real resilience at the moment.
It certainly has shown a lot of resilience, so that is something worth paying attention to but really, in general, I think this is a scenario where you have to look at this through the prism of whether or not we can break above the 50 day EMA, which sits above there. If we do, then it’s a very bullish sign, and it allows the Australian dollar to perhaps go looking to the 0.67 level. The 0.67 level is the midpoint between the extreme support and the extreme resistance in this market. For example, I believe that the 0.65 level underneath is massive support, and we have seen it act as such multiple times. Furthermore, it has previously been, um, resistant. So, market memory comes into the picture.
If we rally and clear the 0.67 level, it’s possible we could go to the top of the overall consolidation phase, which is closer to the 0.69 level. That obviously would be a very bullish move and anything above there then becomes buy and hold. It’s important to recognize that we continue to see overhead resistance and of course we have the FOMC meeting later this week, which will almost certainly have an influence on the markets as well. So, with that, it might be a little bit scary, you know, for traders to hang on to for the next several sessions. So, with that being the case, I don’t expect this to change pattern anytime soon.
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This article was originally posted on FX Empire
