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

💡 DMK Insight

The AUD/USD dip to around 0.6980 signals potential bearish momentum, and here’s why that matters: With the pair down 0.22%, traders should consider the implications of this movement in the context of broader economic indicators. The Australian dollar often reacts to commodity prices and global risk sentiment, so any shifts in these areas could amplify volatility. If the pair breaks below 0.6950, it could trigger further selling pressure, while a rebound above 0.7000 might indicate a short-term recovery. Keep an eye on upcoming economic data releases from both Australia and the U.S., as these could provide the catalyst for a significant move. Additionally, watch how institutional players are positioning themselves; their actions can often precede larger market trends. On the flip side, if the U.S. dollar weakens due to disappointing economic data, the AUD could find support. But right now, the bearish sentiment is palpable, and traders should be cautious about entering long positions until we see a clear reversal pattern.