AUD/USD Forecast – Aussie Continues to Look For a Base

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has done a little bit of base building over the last 48 hours as we are trying to form some type of bottom. The market is paying close attention to the 0.6750 region, not only due to the way we have traded over the course of the last several days, but also the fact that we are looking at the 50 day EMA right in that same region. The market had previously shot straight up in the air and has since pulled back rather drastically. Since then, we have seen the market participants try to stabilize things as the US dollar strengthening of course will have shocked quite a few traders.

For what it is worth, the Reserve Bank of New Zealand did cut rates by 50 basis points and therefore the Australian dollar may have moved in a little bit of sympathy to be honest with you as it typically does. If we were to break down below here, then we could see the 200 day EMA come into the picture right at the 0.6650 level, which is a significant area of both support and resistance in the past in this market.

And therefore, I think that might be your floor. All things being equal, this is a market that’s trying to pick its feet up and go higher, but we’ll have to wait and see whether or not we can clear the 0.6775 level, which for me might show an opportunity to get long with a small position.

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