AUD/USD Forecast – Aussie Continues to Look For Buyers

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has drifted a little bit lower during the early hours on Wednesday. Really at this point in time though, it looks like we are just hanging around the 50 day EMA and I think that might be reason enough to start to look for whether or not we get a bounce.

The Tuesday candle that formed was a hammer, so I will use that as a proxy for an entry, meaning that if we break above the top of the Tuesday candlestick, then I probably will put on a small position to the upside. If we continue to fall from here, there is plenty of support below, especially near the 0.6650 level where the 200-day EMA currently resides.

For what it is worth, New Zealand chose not to cut rates most of this year, but then cut by 50 basis points overnight. Now, the reason I would bring that up is that typically the Australian dollar moves right along with the New Zealand dollar, and that should facilitate a certain amount of selling pressure.

But you will notice that over the last week, both the Australian dollar and the New Zealand dollar have plunged. So, I do think that was for the most part already priced into the market. We are between the 50-day EMA and the 200-day EMA indicators, and in this area, you would expect to see some support.

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