AUD/USD Forecast – Aussie Continues to Chop

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has tried to rally just a bit during the early hours on, Wednesday but really, at this point in time, we are essentially stuck in a range that we had been in for a while with the 0.67 level offering resistance and the 0.66 level underneath offering support. It’s also worth noting that the support region also features the 50 day EMA and the 200 day EMA indicators. So therefore, it’s just more messiness.

We have essentially done nothing for about two months, and I don’t see this changing rapidly. Although we do get the jobs report on Friday, that might cause some noise. But that remains to be seen. I think a lot of traders are concerned and trying to sort out whether or not they have the ability to find enough liquidity this time of year to really get things moving.

Furthermore, you have to pay close attention to the global economic situation because after all, Australia is a heavily commodity laden country, and therefore they need other countries to do well in order for them to do well. The US dollar is considered to be a safety currency, and that, of course, is something worth paying close attention to. In general, this is a market that I think remains rangebound, and until it breaks out, you have to trade it from short term charts at best. Nonetheless, whenever we finally break out of this range, it could be good for 100 points or more, but until then – it’s a neutral market.

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