Yahoo Finance AUD/USD Forecast – Australian Dollar Continues to Look Positive
AUD/USD Forecast Video for 21.12.23
Australian Dollar vs US Dollar Technical Analysis
The Aussie dollar initially pulled back just a bit during the course of the trading session on Wednesday, showing signs of life. All things being equal, the market is likely to continue to see value hunters jumping into the market, and of course we have a lot of upward momentum in this market as of late, and I think a lot of people will continue to pay attention to that. The 0.67 level underneath could offer a little bit of support as it was previous resistance, and I think at this point in time the Australian dollar is likely to go looking to the 0.69 level above, which was a major resistance barrier.
Keep in mind that the Federal Reserve is likely to continue to look very loose with its monetary policy, and then of course makes a certain amount of sense that the US dollar would suffer as a result. Interest rates are dropping in the United States, and it does suggest that perhaps we will continue to see a lot of US dollar selling. The Australian dollar of course has relatively higher interest rates than most other currencies around the world, so it does make a lot of sense that the Aussie is a general winter.
Underneath, the 50-Day EMA is ready to break above the 200-Day EMA to kick off the so-called “golden cross.” The golden cross is an indication of momentum switching to the upside for longer term traders, and investors really like it. It’s not necessarily something that you can use for timing, it just shows what the momentum and the longer-term trend are. If we were to break above the 0.69 level, then it could open up the possibility of a move to a much bigger target. Short-term pullbacks continue to see plenty of buyers, therefore I think it is likely to see a market that continues to try to go higher, but that doesn’t necessarily mean that it’s going to be straight up in the air. Furthermore, you have to keep in mind that liquidity becomes an issue over the last couple of days this week as Christmas is Monday.
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This article was originally posted on FX Empire
