AUD/USD Forecast – Aussie Continues to Show Strength

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Thursday in what would have been somewhat of a thin session. After all, we have to look at it through the prism of the Americans being away for Independence Day on Thursday. And then of course we have to pay close attention to the idea of whether or not the jobs number comes in as expected or if it comes in something unexpected, which could cause a lot of volatility.

The jobs number could have a far reaching implication on not only the Aussie dollar, but the US dollar in general. So, with that, I think you have to look at this through the prism of a market that is trying to break out of a massive triangle. And if it does, that could be a big deal. With this, you could see a situation where if we do break a little bit higher, perhaps above 0.6750, we could go looking to 0.6850.

But on the other hand, if the US dollar really starts to strengthen, it doesn’t take a lot of imagination to see the Australian dollar perhaps pulling back to the 0.6650 level. Really what you’re hoping for, if you’re bullish in this pair, is going to be a weak jobs number. Certainly, it looks like the market’s leaning in that direction and the ADP numbers on Wednesday did miss a bit, but that number has a long history of being completely different than the official numbers. So, I don’t know that I would front run this, but if we do take off to the upside, especially if we close above the top of the triangle on the daily candlestick, the Australian dollar may have some room to run.

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