AUDUSD recouped mid-week’s losses

The AUDUSD pair is rising on Thursday, with the Aussie supported by the RBA’s stance. More details in our analysis for 7 November 2024.

AUDUSD forecast: key trading points

• The AUDUSD pair halted its rapid decline
• A tough RBA stance helped reduce this week’s losses
• AUDUSD forecast for 7 November 2024: 0.6688

Fundamental analysis

The AUDUSD rate recovered on Thursday, reaching 0.6620.

The Australian dollar has successfully recouped nearly all recent losses, supported by the Reserve Bank of Australia’s hawkish outlook and market optimism over potential measures to stimulate the Chinese economy.

The AUDUSD pair fell by 1.9% yesterday due to pressure from a strong US dollar following Donald Trump’s resounding victory in the US presidential election.

The RBA left the interest rate unchanged this week and signalled that monetary policy would remain restrictive for some time, supporting the AUD position.

The AUDUSD forecast appears positive.

AUDUSD technical analysis

The AUDUSD H4 chart shows that the market has completed a downward wave, reaching 0.6512, the first target. A consolidation range has formed above this level today, 7 November 2024, and an upward breakout has opened the possibility of another growth wave. It will be relevant to consider the potential for growth to 0.6620. Once the price hits this level, a narrow consolidation range may form. With a breakout above the range, the growth wave is expected to develop towards the local target of 0.6688.

The Elliott Wave structure and wave matrix for the AUDUSD rate, with a pivot point at 0.6730, technically confirm this scenario. The market has reached the first target of the downward wave at 0.6512. The second corrective wave could start, aiming for the upper boundary of a price envelope at 0.6730. Today, the price rose from its lower boundary to the 0.6595 level and corrected towards 0.6547. The market has defined the boundaries of a consolidation range near the envelope’s lower boundary. With an upward breakout of the range, the growth wave could continue to the central line of the price envelope at 0.6626. Breaking above this level will open the potential for a further correction towards the envelope’s upper boundary at 0.6688.

Summary

The AUDUSD pair is stabilising after a mid-week collapse. Technical indicators for today’s AUDUSD forecast suggest that the correction could continue towards the 0.6688 level.