AUD/USD Extends V-Shape Recovery to Push Above February High
AUD/USD pushes above the February high (0.6409) as it extends the V-shaped recovery from earlier this month.
Written by
David Song
Strategist
Australian Dollar Outlook: AUD/USD
AUD/USD pushes above the February high (0.6409) as it extends the V-shaped recovery from earlier this month.
AUD/USD Extends V-Shape Recovery to Clear February High
AUD/USD climbs to a fresh yearly high (0.6438) on the back of US Dollar weakness, and developments coming out of the White House may continue to influence foreign exchange markets as President Donald Trump insists that ‘preemptive cuts in interest rates are being called for by many.’
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With that said, speculation for a looming Federal Reserve rate cut may keep AUD/USD afloat, but the V-shape recovery in the exchange rate may unravel should it struggle to test the December high (0.6515).
AUD/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; AUD/USD on TradingView
- AUD/USD may attempt to test the December high (0.6515) as it trades to a fresh yearly high (0.6438), with a break/close above the 0.6510 (38.2% Fibonacci retracement) to 0.6520 (38.2% Fibonacci extension) region opening up 0.6590 (38.2% Fibonacci extension).
- Next area of interest comes in around the November high (0.6688), but AUD/USD may struggle to retain the advance from the start of the week should it fail to close above 0.6410 (50% Fibonacci extension).
- Need a move below 0.6240 (61.8% Fibonacci extension) to bring the 0.6130 (23.6% Fibonacci retracement) to 0.6140 (23.6% Fibonacci extension) area on the radar, with the next region of interest coming in around 0.5990 (78.6% Fibonacci extension) to 0.6020 (38.2% Fibonacci extension).
Additional Market Outlooks
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Euro Forecast: EUR/USD Vulnerable to RSI Sell-Signal amid ECB Rate Cut
Canadian Dollar Forecast: USD/CAD Drops as BoC Holds Interest Rate
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
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