AUD/USD Price Forecast: Upside towards multi-year high of 0.7220 looks possible
The AUD/USD pair trades subduedly around 0.7120 during the European trading session on Friday. The Aussie pair ticks lower as the US Dollar (USD) trades broadly firm amid higher oil prices due to the prolonged closure of the Strait of Hormuz, a critical passage to almost 20% of global energy supply.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds onto the 10-day high of around 99.00. Meanwhile, the WTI Oil price flattens at around 95.00, but is up almost 20% from its recent low of $78.88 posted on April 17.
Theoretically, higher oil prices boost United States (US) inflation expectations, a scenario that discourages the Federal Reserve (Fed) from reducing interest rates and improves the US Dollar’s appeal.
Going forward, investors will focus on the Australian Q1 Consumer Price Index (CPI) and the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
AUD/USD technical analysis
AUD/USD trades close to Thursday's low of 0.7120 as of writing. However, the near-term bias of the pair remains constructive as it holds above the 20-period exponential moving average (EMA), which is at 0.7089. The Relative Strength Index (RSI) around 57 stays in positive but not overbought territory, suggesting buyers retain control while leaving room for further upside extension.
On the downside, initial support is located at the 20-day EMA near 0.7089, where a break would hint at fading bullish pressure and a deeper corrective phase toward the psychological level of 0.7000. Looking up, the pair could revisit the multi-year high of 0.7222; a sustained move above that level would open the door towards 0.7300.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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