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AUD/USD Price Forecast: Tests 0.6750 to reach overbought territory

  • AUD/USD price may advance further daily chart analysis indicates strengthening of a bullish bias.
  • The 9-day EMA is positioned above the 50-day EMA, suggesting the recent price action outperforming the longer-term trend.
  • The seven-month high of 0.6798 level appears as the key barrier.

AUD/USD retraces its recent losses from the previous session, trading around 0.6750 during Thursday’s European hours. The daily chart analysis indicates that the pair trends upwards within an ascending channel pattern, reinforcing the bullish bias.

The 14-day Relative Strength Index (RSI) consolidates slightly below the 70 level, indicating that bullish momentum is in play. However, if the RSI reaches 70, it would signal that the AUD/USD pair is entering overbought territory, suggesting a potential correction might be imminent.

Moreover, the daily chart analysis also indicated that the 9-day Exponential Moving Average (EMA) is positioned above the 50-day EMA, which is typically interpreted as a bullish signal. This suggests that the recent price action is outperforming the longer-term trend.

In terms of resistance, the AUD/USD pair could target the region near its seven-month high of 0.6798, reached on July 11. A break above this level would likely encourage the pair to test the upper boundary of the ascending channel around the 0.6860 level.

On the downside, the AUD/USD pair may first test the lower boundary of the ascending channel around the 0.6700 level, followed by the nine-day EMA at 0.6686. The next support lies at the 50-day EMA at 0.6634.

A break below the 50-day EMA could weaken the bullish bias and increase downward pressure, leading the AUD/USD pair to test the throwback support at 0.6575. If the pair falls below this support, it could extend its decline toward the next throwback level at 0.6470.

AUD/USD: Daily Chart

Australian Dollar PRICE Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.10%-0.15%0.25%-0.12%-0.02%-0.05%-0.06%
EUR-0.10% -0.26%0.11%-0.23%-0.13%-0.18%-0.17%
GBP0.15%0.26% 0.38%0.03%0.13%0.08%0.09%
JPY-0.25%-0.11%-0.38% -0.45%-0.26%-0.31%-0.31%
CAD0.12%0.23%-0.03%0.45% 0.11%0.06%0.06%
AUD0.02%0.13%-0.13%0.26%-0.11% -0.03%-0.05%
NZD0.05%0.18%-0.08%0.31%-0.06%0.03% -0.01%
CHF0.06%0.17%-0.09%0.31%-0.06%0.05%0.00% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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AUD/USD Price Forecast: Tests 0.6750 to reach overbought territory