AUD/USD Forecast – Australian Dollar Recovers on Thursday

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AUD/USD Forecast Video for 16-02-2024

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially fell a bit during the trading session on Thursday but has since recovered enough to hit the 0.65 level. That being said, the market is going to continue to be very noisy, the 0.65 level offering a bit of fulcrum for price. With that being said, I think you’ve got a range-bound market just waiting to happen, and we may recover as high as 0.6550, where we run into some significant resistance. Keep in mind this pair is highly influenced by risk appetite and of course the Chinese economy. The Australian dollar is highly levered to a lot of commodities, so you’ll have to pay attention to commodity markets as well. But at this point in time, it looks like we are happy to just hang around the 0.65 level again.

If we were to turn around and take out the 0.6433 level underneath, then it could send the Aussie dollar down to the 0.63 level. Nonetheless, I think this is a market that you have to be very cautious about. Short-term traders will probably love it though, as it is so range-bound. And ultimately, I do think that a lot of this will sort itself out over the course of the next couple of weeks. This should be an interesting market to watch to say the least.

We’re in an area that has a lot of market memory attached to it, so that makes sense that we would see quite a bit of choppiness in this region as well. Above, we have the 50-day EMA crossing below the 200-day EMA, which is a longer-term negative signal, but it’s typically very late to show up, so I don’t put too much credence into it other than the fact that I acknowledge that maybe longer-term traders are looking at it. If we continue to see this type of noise, I think eventually something will break and we will surge in one direction or the other. But right now, it looks like we’re content to simply spin our wheels.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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