Forecast for AUD/USD on January 5, 2024

AUD/USD:

Yesterday, the Australian dollar came close to the support at 0.6693, missing it by just 5 points from the December 4th high. However, you can disregard these 5 points, and just focus on the forming reversal.

The most prominent sign of a reversal could be the Marlin oscillator signal line's reversal from the lower band of its own channel on the daily chart. If we confirm the reversal after the US employment data is released in the evening, then in the coming days, we can expect the price to exceed the December 28th high, near the target level of 0.6872, which means testing the level of 0.6897.

If the price falls below 0.6693 under the pressure of reports, the target will be 0.6612. This is an alternative scenario.

On the 4-hour chart, the price and the Marlin oscillator have formed a minor convergence. This could indicate a potential bullish reversal for the Australian dollar. We can resolve this issue once the US labor data is published. The 0.6815 level is important since it coincides with the MACD line, which strengthens it. There is a possibility that the price may rise to this level in the short-term, followed by a reversal to the current support (0.6693).