Recent Price Action:
- The AUD/USD pair saw minor upward movement on Friday, hovering around the key level of 0.65.
- This reflects a period of consolidation for the currency pair.
Technical Levels:
- Resistance: 0.6650 level is seen as a potential ceiling.
- Support: 0.6450 level is considered a potential floor.
Market Outlook:
- The analyst predicts a continuation of the current rangebound trading for AUD/USD in the near future.
- Several factors contribute to this outlook:
- Lack of strong directional drivers: Central banks around the world, including the Federal Reserve and Reserve Bank of Australia (RBA), are expected to cut rates, leading to a neutral forex environment.
- Global market sentiment: A general lack of momentum across the forex market suggests a potentially quiet year for currency pairs.
Trading Strategy:
- The analyst suggests a range-bound trading approach for AUD/USD.
- Look for signs of exhaustion near the top (0.6650) or bottom (0.6450) of the range to potentially enter short-term trades in the opposite direction.
- A confirmed break below 0.6450 could signal a more significant downtrend.
Overall:
The AUD/USD pair is expected to remain stuck in a consolidation pattern due to a lack of strong directional cues from central bank policies and broader market sentiment. Range-bound trading with a focus on near-term opportunities might be a suitable strategy in the current environment.