AUD/USD Forecast – Australian Dollar Pulls Back Toward Support

AUD/USD Forecast Video for 18-01-2024

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has pulled back again during the Wednesday session, but it looks like we’re getting somewhat close to a support level that I think a lot of people will be paying attention to in the form of the 0.65 level. The fact that we have bounced a little bit does suggest that perhaps buyers are starting to anticipate that area, whether or not it holds or remains to be seen, but it is an area that previously has been supported as well as massively resistant. Market memory should come into play in this area.

So, I think there’s a lot of market memory in this region and it would make a certain amount of sense if we turned around and show signs of light. The 200 day EMA sitting near the 0.66 level is an area that you need to pay attention to as well because quite frankly, if we can overcome that, then one would have to assume there’s a certain amount of momentum just waiting to jump into the market and push it towards the 0.67 level, which is what I would consider to be fair value in the current trading range between the 0.65 level and the 0.69 level above.

If we break down below the 0.65 level, then things get a little bit ugly. It could go looking to the 0.6350 level before everything is said and done, an area that we’ve seen a lot of buying that in the past and keep in mind that the Australian dollar is heavily influenced by commodity markets. So you’ll want to keep an eye on that as well and of course, global risk appetite, so if we suddenly see people buying risk assets, so then the Aussie should be a beneficiary but the exact opposite can be true as well in the sense that if people start selling anything that’s risk related, the U S dollar generally is the big winner and therefore commodity currencies like the Australian dollar tend to take it on the chin in that scenario.

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