AUD/USD Forecast – Aussie Continues to Look at Resistance Above

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back a bit from the 0.68 level, which is an area that has caused some noise in the past. So, the question is, will this pullback be of any consequence? At this point, I don’t really worry about it too much, but I also recognize that this has been a range-bound market for a long time. We could pull back to the 0.67 level where we launched from on Friday and still really not change much. It’s really not until we break down below that level that I think the sellers start to get a little bit more aggressive. All things being equal, this is a market that I think continues to be noisy.

I think it’s also a market that continues to bank on the idea of whether or not there is global growth or, you know, what’s going on in Asia. Because of course, Australia exports most of its commodities to Asia, etcetera. So, with this, we are overbought, so a pullback, at the very least, makes a lot of sense. So, I think that’s what you’re seeing.

There is a serious lack of news in the first half of the week. So as long as that’s the case, we also have a situation where the market may just simply drift back and forth trying to find some type of footing. If we break above the 0.6805 level, that frees the Australian dollar to go much higher, probably more like a long-term uptrend. As things are right now, we’re just threatening significant resistance.

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