AUD/USD Forecast – Aussie Continues to Respect The Overall Range

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit over the last 24 hours, which does make a certain amount of sense as we are getting closer to the top of the overall consolidation range, and we are starting to cross over in the overbought condition on the stochastic oscillator. With that being the case, I think a little bit of a pullback does make a certain amount of sense because we went straight up in the air and eventually gravity comes back into the picture. After all, the Australian dollar is highly sensitive to the Asian economy and global economy as well as it is a major commodity producer.

When I look at this market, it’s pretty clear to me that the 0.6850 level above is massive resistance just as the 0.6450 level underneath is massive support. We’re closer to the top than the bottom. We got here awfully quick, so it does make sense that we dropped. I don’t necessarily think that this is a pair that’s going to fall apart and go plunging, but I do think that we had gotten far too ahead of ourselves at this point and now we are just thrashing around a roughly 300 or possibly 400 point range. If that’s going to be the case, range-bound traders are going to love this market, and you are starting to get a signal that perhaps we are going to roll over allowing for the next leg.

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