AUD/USD Weekly Forecast – Australian Dollar Sits Just Above Major Support

AUD/USD Forecast Video for 29-01-2024

Australian Dollar vs US Dollar Weekly Technical Analysis

The Aussie dollar has gone back and forth during the course of the trading week and at this point in time it does look a bit neutral as we close out trading. However, it’s also worth noting that the 0.65 level underneath is going to continue to cause quite a bit of support and it was previous resistance. In other words, there is a lot of order flow in this general vicinity.

Therefore, we are looking at the likelihood of market memory showing up at this juncture. At this point, the 0.65 level underneath is a large round number as well, and there is a certain amount of psychology attracted to that figure. If we break to the upside, meaning clearing the 50-week EMA, then I think we could go looking to the 0.67 level.

The 0.67 level is essentially fair value in the overall consolidation range that I believe we are about to embark on. The 0.69 level of course would be the highest of that range and now that we have the 200 week EMA hanging around that area, I think that adds even more technical prudence to this level which has already proven itself to be important. I think the Aussie eventually goes higher but it is worth noting on the daily charts we have seen long wicks form every time we have tried to rally all week, so certainly a lot of pressure against the Aussie but eventually that could give way and once it does, I think you’ll have a little bit of chasing at least for a couple of weeks.

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