Superior broker technology provider since 2010
+1 (315) 675 1086 |

AUD/USD Forecast: Attempts a Recovery


The Australian dollar experienced a notable rally but remains below the 50-Day EMA. 

  • The AUD/USD displayed a significant rally during Monday’s trading session, although it remains below the 50-Day Exponential Moving Average (EMA).
  • A breakthrough above this level could potentially propel the Aussie towards the 200-Day EMA, situated just below the 0.68 mark.
  • Market participants will closely monitor this area, considering its recent reliability as a resistance zone.
  • If the market manages to surpass the 0.68 level, it may signal a strong upward momentum, potentially leading the Australian dollar toward the 0.70 level.

Conversely, should the market reverse and decline from its current position, the 0.66 level would represent notable support. A breakdown below this level could drive the Aussie dollar toward the 0.64 mark. For now, it is likely that the market will continue to exhibit back-and-forth price action, offering numerous range-bound trading opportunities. Traders with effective range-bound strategies may find this market particularly favorable.

The Australian dollar is highly sensitive to the global growth situation, which is a source of concern for many. Consequently, it is unsurprising that volatility persists. In this context, it is crucial to carefully consider position sizing, as the market will eventually break out of its range. When that occurs, it could lead to significant volatility, with many traders seeking to cover their positions and chasing what is commonly known as the “fear of missing out” (FOMO) trade.

The market will continue to face questions regarding the Federal Reserve’s monetary policy stance and the trajectory of the global situation. Traders will ponder whether the Federal Reserve will maintain a tight policy approach and whether the global conditions will improve or worsen, potentially driving market participants towards the safety of the US dollar. In the meantime, the market appears to be in the process of determining its direction, and as a result, it is expected to remain highly volatile and noisy.

TL;DR: the Australian dollar experienced a notable rally but remains below the 50-Day EMA. The market’s future direction will be closely tied to its ability to break through key resistance levels or find support at crucial levels. Range-bound trading strategies may prove effective in the current environment. With global growth concerns prevailing, the Australian dollar is likely to continue experiencing volatility. Traders should exercise caution, particularly with position sizing, as a breakout from the range could lead to significant market moves fueled by traders’ reactions and FOMO trading. The ongoing uncertainties surrounding the Federal Reserve’s policies and the global economic situation will further contribute to the market’s noise and volatility in the near term.


Ready to trade our daily Forex forecast? Here’s a list of some of the best Australian forex brokers to check out.


Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.