AUD/USD Forecast – Aussie Continues to Be Noisy

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Thursday again, as we are hanging around just above the crucial 0.67 level. The 0.67 level was previously resistance, and therefore, you would assume support. We also are dancing along a downtrend line from the symmetrical triangle that we had been in previously and therefore, I think you’ve got a situation where you should see a certain amount of support. If we break down below the 0.67 level, then the market could go down to the 0.6650 level. That’s basically where the 50-day EMA comes into the picture.

If we break above the 0.68 level, then I think the market goes looking to the 0.685 level, and anything above there really starts to kick off a big leg higher. The Australian dollar is highly sensitive to commodity markets, so you need to keep that in mind, but it’s also very sensitive to Asian growth, acceleration, that type of thing. So, pay attention to that as well. As things stand right now, I don’t have any interest in shorting this pair.

But I don’t necessarily think that we’ve got a situation where we take off and just shoot straight up in the air or break down rapidly. I think this is more or less going to be a grind and therefore we’ve got a situation where traders probably are going to take their time and get some type of assessment of risk appetite overall. Remember, the Australian dollar is considered to be riskier than the greenback.

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