The Australian Dollar is Forecast Higher vs US Dollar, Pound and Euro as Key Technical Levels are Broken

The result has been a shift in near-term forecasts to favour the Aussie against the euro, pound sterling and US dollar.

That said, in the longer-term many analysts remain sceptical about the AUD's ability to sustain further gains.

For your reference, at the weekend we see the following levels:

• The pound sterling to Australian dollar: 0.06 pct in the blue having reached 1.7792.
• The euro to Australian dollar rate: 0.08 pct lower at 1.4077.
• The Australian to US dollar exchange rate: unchanged at 0.9342.

PS: All the above are spot market quotes, your bank will affix a discretionary spread to the figures. In order to get as close to the market rate we suggest consulting an independent FX provider, the delivery of up to 5% more currency is possible in many instances.

Pound Sterling to Australian Dollar Forecast: GBP/AUD Pair Vulnerable to Further Weakness

Admiral Markets note that key support levels in the sterling / Aussie rate have been broken, ensuring further declines are likely.

However, watch out for support which could scupper this move lower:

"The pair weakened further to hit fresh 2014 low, led by a decisive break below a short-term ascending trend-channel formation on daily chart.

"The pair now seems to continue dropping towards 1.7700 round figure mark. Further, a decisive break below 1.7700 mark is likely to make the pair vulnerable to further near-term weakness initially towards 1.7600-1.7580 horizontal support area and ultimately towards testing sub-1.7400 support area, marked by 38.2% Fib. retracement level of Apr. 2013 to Jan. 2014 up-swing.

"On the upside, 1.7850 horizontal area now seems to act as immediate resistance. However, important support break level near 1.7930-50 zone now seems to be acting as key resistance area for the pair. This 1.7950 resistance could possibly cap any near-term pull-back for the pair."

Aus vs US Dollar Forecast: Could a Move Higher to 0.9472 Take Place?

AUD/USD has surged higher, taking out the mid-August high and 55-day average at 0.9346/63.

"This turns the focus on key price resistance at .9375. Above here though is needed to complete a base and signal further strength towards .9418 initially, ahead of the more important trendline resistance at .9447. A direct extension beyond the latter should trigger a move higher towards .9472 and then the 2014 high at .9506," says a forecast issued by the team at Credit Suisse.

Furthermore:

"Support shows at .9329/28 at first, below which can see a move back to .9302/01. A break below here can see a move lower towards the recent low at .9242/30. Strategy: Flat. Buy at .9340, stop below .9301, for .9445."

Euro to Aus Dollar Forecast: EUR/AUD Could Continue Downward Trajectory

Turning to the euro/aud analysts at Admiral Markets confirm they are bearish:

"Continuing with its downward trajectory, as depicted by a short-term descending trend-channel formation on daily chart, the pair this week has repeatedly been hitting fresh 2014 lows.

"The pair now seems all set to drop further towards testing 1.4040-20 support area, representing the confluence area comprising of the lower trend-line of the descending channel and 50% Fib. retracement level of its up-move from 2013 lows to 2014 high.

"On the upside, 1.4200-20 horizontal area now seems to provide immediate resistance. Any strength above 1.4200 resistance area is likely to be capped at 1.4300 resistance zone, marked by the upper trend-line of the descending channel."