AUD/USD Forecast – Aussie Continues to Look Strong

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied slightly in the early hours on Wednesday as we continue to see a lot of noisy behavior and perhaps betting that the FOMC will be extraordinarily dovish and therefore looking to punish the US dollar. If the market does continue to rally from here, the 0.6850 level is an area that I think offers a significant amount of resistance as it has multiple times in the past.

If the market were to turn around and start falling, perhaps due to the chairman of the Federal Reserve not being as then the market will almost certainly find plenty of support near the 50 day EMA and the 0.6650 level. Keep in mind that the Australian dollar is highly sensitive to commodities and of course global trade because of its commodities. It also is highly sensitive to China and the rest of Asia, so depending on how their economies are doing, a lot of times you’ll see that have a bit of a knock-on effect over here in the Australian dollar.

All things being equal, we are getting close to a major resistance barrier in the form of 0.6850, which could give us an idea as to where the market goes longer term. In this environment, I do think we are still very much stuck in consolidation, but we are starting to press the issue to see whether or not we can break out. I look for a daily close above 0.6850 to be convinced of the move lasting for a longer-term period.

For a look at all of today’s economic events, check out our economic calendar.