AUD/USD Forecast – Australian Dollar Shows Signs of Strength

AUD/USD Forecast – Australian Dollar Shows Signs of Strength
AUD/USD Forecast – Australian Dollar Shows Signs of Strength

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallies after jobs report the unemployment claims in the United States came in a little bit more negative than anticipated, and that has people pushing the US dollar down a bit. That being said, the Australian dollar has also bounced from the 200-day EMA so it does make quite a bit of sense that we get a little bit of momentum here. That being said, the 0.6650 level above will continue to be significant resistance as it is at the top of the overall consolidation range. If we were to break above the 0.6650 level, it opens up the possibility of a move to the 0.68 level, possibly even the 0.69 level.

I’m not holding my breath for this move, but it is worth noting that we are at least trying to build up the necessary momentum to make that happen. If we were to turn around and break down below the 200 day EMA, then I think we just continued the overall consolidation that could send this pair down to the 0.6450 level. Keep in mind that the Australian dollar needs more of a risk on type of attitude around there to get things moving.

And therefore, you have a situation where market participants will continue to look at this through the prism of whether or not we can stay or break out of this big box of trading that we have been in since the beginning of the year. As things stands right now, I wouldn’t necessarily chase the Aussie dollar to the upside and I still think that signs of exhaustion just above are probably shorting opportunities.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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