AUD/USD Forecast – Aussie Continues to Look Like Its Going Higher

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the course of the early hours on Monday as we continue to see a lot of noisy behavior. The market looks likely to continue going higher based upon the last couple of days, but I do think it is becoming very noisy. We are breaking above a significant downtrend line on the weekly chart, so therefore it looks like we are breaking out to the upside overall. The 0.6850 level is a narrow area that I think a lot of people will be paying close attention to, as breaking above there could open up the possibility of going to the 0.69 level.

Underneath, if we do drop from here, the 0.6650 level is likely to be massive support and of course we also have the 50-day EMA hanging around that area as well, so it all ties together quite nicely. The Australian dollar has been more of a grind than anything else, but it does look like we are, and if that’s going to be the case, then it’s likely that we will continue to see more upward pressure and dips being bought into. The 200 day EMA is near the 0.66 level, which of course is a large indicator that a lot of people pay attention to determine the overall trend.

Ultimately, I am not a huge fan of the Australian dollar, but at the end of the day, it appears that you cannot short it, regardless. I also don’t personally like the idea of trading on charts that are so choppy, but it certainly looks as if the Aussie is going to do whatever it can to rise over the longer-term.

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