The AUD/USD currency pair continues its upward movement, forming a reversal “Head and Shoulders” pattern. Moving averages indicate a short-term bullish trend. Prices are once again testing the area between the signal lines, signaling buyer pressure and a potential continuation of the instrument’s decline from current levels. At the time of this forecast’s publication, the Australian Dollar to US Dollar exchange rate stands at 0.6347. Currently, we can expect an attempt to rise and test the resistance area near the 0.6385 level. Then, a price rebound downward and a continuation of the decline towards the area below 0.6225.
Australian Dollar Forecast for February 26, 2025
An additional signal supporting the decline of the AUD/USD currency pair will be a bounce from the resistance line on the Relative Strength Index (RSI). The second signal in favor of this scenario will be a rebound from the upper boundary of the “Wedge” reversal pattern. The cancellation of the scenario with a decline in the Australian Dollar on Forex will be a strong price increase and a breakout of the 0.6445 level. This will indicate a breakout of the resistance area and a continuation of the AUD/USD currency pair’s growth with a potential target above 0.6675. Confirmation of the pair’s decline should be expected with a breakout of the support area and the closing of quotes below 0.6305. This will indicate a breakout of the lower boundary of the “Head and Shoulders” pattern and the start of the pattern’s implementation with targets below.
Australian Dollar Forecast for February 26, 2025 suggests an attempt to test the resistance level near the 0.6385 area. Then, a continuation of the pair’s decline below the 0.6225 level. An additional signal for the pair’s decline will be a trendline test on the RSI indicator. The cancellation of the downside scenario will be a strong increase in AUD/USD quotes and a breakout of the 0.6445 area, indicating a continued rise with a potential target above 0.6675.
