AUD/USD Forecast – Aussie Dollar Is Pressing Against a Ceiling

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied rather significantly during the trading session on. Thursday, as we are pressuring the 0.6850 level. The 0.6850 level is an area that has offered significant resistance, and I do think historically speaking, it has been very important, so we’ll have to watch this very closely. I anticipate that the real tell will be how the market closes for the week, not the day.

So do be somewhat cautious about this, but if we get at least a daily close above the 0.6850 level, then we probably go higher. The market has been in a range for quite some time. And if you look at it, zooming out to about the beginning of 2023, we are at the top of that range.

The question is, do we have enough momentum to actually break out? We’ll have to wait and see. You could put a stochastic oscillator on the chart. and you would see that we are overbought and crossing on the daily. So, it is definitely a dangerous area. I don’t know that I would jump in right away here. I would wait for a daily close above that level. Quite frankly, I’d prefer to see a weekly close above that level. I think the danger of a pullback is very high here because quite frankly, the Federal Reserve is cutting rates as aggressively as they did. That’s probably not a good sign for the global economy.

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