AUD/USD Price Forecast: Advancing 20-day EMA backs more upside

💡 DMK Insight

The AUD/USD’s 0.27% rise to near 0.7065 signals a bullish sentiment driven by strong labor data, and here’s why that matters right now: A robust labor market often indicates economic strength, which can lead to higher interest rates. Traders should keep an eye on the Reserve Bank of Australia’s (RBA) upcoming policy decisions, as they may react to this data. If the RBA hints at tightening, we could see further gains in the AUD, potentially pushing the pair above key resistance levels. Conversely, if the U.S. labor data shows weakness, it could amplify the AUD’s strength against the USD, creating a favorable environment for long positions. But don’t overlook the potential for volatility. The market’s reaction to upcoming U.S. economic indicators could shift sentiment quickly. Watch for the AUD/USD to test the 0.7100 level, which could act as a psychological barrier. If it breaks, we might see a stronger rally, while a failure to hold above 0.7065 could signal a pullback. Keep your eyes on the daily chart for any emerging patterns that could inform your trading strategy.