AUD/USD Forecast Video for 12-02-2024
Australian Dollar vs US Dollar Weekly Technical Analysis
The Aussie dollar initially fell during the week, dipping below the 0.65 level. However, we have turned around to show signs of life, and it looks like the weekly candlestick could end up forming a bit of a hammer. The 0.65 level is an area that I think a lot of people will be paying close attention to, because it is an area that previously had been resistant. With this, I think the market memory offering support makes quite a bit of sense. If we break out above the top of the weekly candlestick, then we could go to the 50-week EMA, perhaps even the 0.67 level.
If we were to turn around and break down below there, the bottom of the candlestick that is, then we could drop down to the 0.63 level. The Australian dollar is highly sensitive to risk appetite and of course, global trade. If we have more of a risk on type of attitude, then the Aussie could continue to go higher. On the other hand, if we get risk off, then we could continue to drop from here. I think we are at a major inflection point. So, the next candle or two really could set this market in motion.
Ultimately, this is a pair that I look at as a way to gauge potential risk appetite, and therefore you can use it as a tertiary indicator with other markets as well. Either way, I think as soon as we get a longer-term expansive candlestick, then we can put real money to work.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire