AUD/USD Forecast – Aussie Continues to Look Supported During Pullback

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has pulled back just a bit during the trading session in Asia and Europe, and now it looks like as we head into America, we are going to have to see whether or not the support underneath holds. I do think that there are plenty of buyers underneath, but a pullback is not necessarily going to be the worst thing that could happen. In fact, it makes it a little bit more tenable for people to come back in and start buying. I believe there is plenty of support near the 0.67 level, and then again at the 0.6650 level after that, where we also have the 50 day EMA above, we have a lot of resistance up the 0.64 level.

And if we can break above there, then the market could go much higher. And the Australian dollar of course is influenced by commodities and Asia in general, so if Asia is growing, then Australia generally wins on two fronts, not only on the commodity side but also the banking side, because there are massive banks in Australia that fund and finance a lot of growth in Asia overall.

So, with that being said, I think you’ve got a situation where buyers, you know, will continue to look at value. Another major drive here, of course, is going to be the idea that the Federal Reserve may actually cut rates sometime between now and the end of the year. That, of course, works against the dollar, but that remains to be seen.

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