AUD/USD Forecast – Aussie Continues to See Volatility

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied pretty significantly during the trading session in the early hours of Wednesday as we continue to see a lot of volatility in the markets. After all, it was just overnight that Gov. Ureda from the Bank of Japan decided to change his tune and start talking about how the Bank of Japan was not going to continue to raise interest rates in an unstable market environment.

This is a complete reversal from what we had seen a couple of days ago, and therefore the markets, at least in the short term, are celebrating the whole idea of perhaps the carry trade still continuing. Australia, of course, is highly sensitive to risk appetite and China, which makes a lot of sense that Japan also falls in that purview as well.

So, all of this being said, I think there is a lot of resistance above that will continue to come into the picture near the 0.6650 level, as well as the 50-day EMA and the 200-day EMA. It is a sizable candlestick for the day so far. And we did peak above a little bit of resistance. So, we’ll see if there’s a follow through.

At this point in time, I think the upside’s somewhat limited, even though it does look like we are probably going to rally. Ultimately, this is a market that I think continues to see a lot of back and forth action, and therefore I am not looking for massive moves in the short term when it comes to the Aussie.

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