AUD/US Weekly Forecast – Aussie Dollar Continues to Rally

AUD/USD Forecast Video for 18.12.23

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has initially pulled back just a bit during the trading week, reaching down to the 0.65 level. The 0.65 level is an area that previously has been resistant, and now it looks as if we are trying to find support. Ultimately, this is a market that I think will continue to go to the 0.69 level, which is an area of significant resistance. Furthermore, we also have the possibility of the market trying to get to the 0.71 level.

Underneath, the 0.65 level is a major support level, and if we were to break down below there, it’s likely that we could go down to the 0.63 level. That is where we had seen a lot of support previously, but all things being equal I think this is a market that is turning around as the Federal Reserve has pivoted going forward, and it does suggest that the US dollar will continue to fall.

I think next year will probably be pretty rough for the US dollar, at least until we get some major macroeconomic news that is unpleasant. The Australian dollar is highly levered to the global growth situation and of course commodity markets, so I think at this point in time it looks as if we are going to continue to see a little bit of follow-through, but I don’t necessarily think that we are going to shoot straight up in the air as well. Expect a lot of choppy behavior, and of course, the lack of liquidity next week could be a major issue. As we head into the holidays, markets could get a little bit strange, with the majority of traders focusing on celebrating holidays.

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