AUD/USD Forecast – Australian Dollar Continues to Attempt a Rally
AUD/USD Forecast Video for 29-01-2024
Australian Dollar vs US Dollar Technical Analysis
The Aussie Dollar has rallied just a bit during the trading session on Friday as we continue to see a lot of noisy behavior. The 200-day EMA sits above and causes quite a bit of resistance right along with the 50-day EMA. In general, this is a market that if we were to break above the 50-day EMA, we could then go to the 0.67 level. Underneath the 0.65 level is an area that I think offers significant support. In general, this is a market that I think is going to continue to see a lot of volatility and that does make a certain amount of sense considering that the Australian dollar is so highly sensitive to overall commodity markets, overall risk appetite, overall global trade, everything that’s going on in Asia, etcetera, etcetera.
At this point, the Federal Reserve is likely to cut rates in 2024, but a lot of people are wondering whether or not other banks are going to do the same because quite frankly, there is the possibility that we get a bit of a slowdown when it comes to global trade. At this point in time, it looks like there is a lot of confusion, and therefore we need to pay close attention to this pair as it could give us an idea as to where risk appetite is going.
All things being equal, I think the 0.65 level is a significant amount of support, with the 0.69 level above being significant resistance. Because of this, I do think we will eventually get to that fair value area of 0.67, but it’s going to be a fight. As things stand right now, the one thing that I cannot help but notice is that all week we have tried to rally, only to fail later in the day, forming long wicks to the upside. That typically means that although there is a significant amount of resistance, you can make an argument that perhaps there’s a little bit of persistence in this market as well. Either way, volatility remains.
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This article was originally posted on FX Empire
