AUD/USD Forecast – Aussie Continues to Look Sluggish

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar did try to rally a bit in the early hours on Monday, but quite frankly it just doesn’t seem to have much in the way of momentum. In other words, I think this is a situation where we are still trying to sort out whether or not we have enough support to turn things around for a bigger move. In general, this is a situation where if we do break down from here, we could drop to the 0.6450 level. The 0.65 level, of course, will have a certain amount of influence, but the 0.6450 level is an area that I think a lot of people will pay attention to because it has previously been supported.

If we turn around and rally to the upside, then we could go looking to the 0.6650 level after breaking above the 200-day EMA. In general, this is a market that I think continues to be very noisy and probably lackluster because the Australian dollar is so highly levered to Asia and commodities, which of course are all over the place.

We are oversold, I’m the first to admit that, but we haven’t seen the impulsive candlestick in the other direction to really get a lot of FOMO trading in on the buy side. This is essentially what will be needed for this pair to bounce enough to entice traders to get involved at this point. The selloff had been brutal, and I think this is the biggest issue at the moment – the psychology of a market that just got crushed.

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