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AUD/USD Forecast: Test at Major Support Barrier

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Considering what's been happening lately, it seems like the market could use a bit of a boost regardless of whatever else is going on. 

  • The AUD/USD had a bit of a downward turn during Friday's trading action, but then it managed to bounce back ever so slightly. It dipped below that 0.64 level briefly before picking itself up, giving a hint that it might be getting back on track.
  • Right now, as I'm talking about this, you can see a clear upward movement, which adds an interesting twist to the whole situation.
  • It's important to note that the 0.64 level has been a key point of support before, so when we look at what's happening now, it makes sense considering that history.

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Just a bit higher, around that 0.65 mark, there might be a potential roadblock in the way. It's got a history of acting as support, so even if we manage to push past it, we should remember that there could be more challenges ahead around that 0.66 level that might slow down the progress.

But on the flip side, if the value goes down past the lowest point we saw on Friday, that could trigger a noticeable downward shift in the market. Remember, the Australian dollar's performance tends to dance to the tune of changes in risk appetite, global currency swings, and the demand for stuff like raw materials. With all these things at play, it's a good idea to be cautious before making any big moves, especially with all the twists and turns happening in the world right now.

Though, if some good news comes our way, the Australian dollar could be a tempting option for folks looking to invest. Its value is tied up with how well things are going in Asia and how much they're in need of materials from that part of the world.

Be Cautious

Considering what's been happening lately, it seems like the market could use a bit of a boost regardless of whatever else is going on. Because of that, I'd suggest holding off on any short positions for now, unless we see a major drop below that lowest point, we hit in the last trading stretch.

If we step back and take a bigger view, it's wise to expect some noticeable ups and downs in trading, kind of like what we've been seeing these past few months. Given that, being careful about how much you're putting in makes a lot of sense. Keep in mind that there's a bunch of challenges down the road that could make things more complicated. So, it's best not to go overboard with leverage, given how touchy this currency pair can be.

In conclusion, the Australian dollar's journey hints at some interesting changes in the recent Friday trading scene. That ongoing upward push adds a layer of intrigue, but it's smart to keep an eye on those historical support levels and possible obstacles. Amid all these twists and turns, being cautious and factoring in the bigger market issues will be important for navigating this ever-changing currency landscape.

AUD/USD

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Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

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