AUD/USD Forecast – Aussie Dollar Continues to Consolidate

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back slightly during the early hours on. Friday only to turn around and show signs of life again. I think at this point in time, it’s obvious that the Australian dollar has been going back and forth.

And with that being the case, the market is likely to continue to see a lot of confusion and indecision. It is worth noting that the 50 day EMA is underneath as a major support level and then after that the 0.6650 level is a major support level as well. All things being equal, the market is going to continue to see a lot of questions asked about the overall risk appetite around the world, I think continues to be a major issue. And of course, Australia is highly sensitive to this and of course, Asia.

This is a market that I think at least we are hanging around between the 0.6650 level on the bottom and the 0.6850 level on the top. This is a market that will continue to be very noisy, but I think if you are a short-term range-bound trader, this might be the market for you. There are a lot of questions right now about whether or not we are slowing down globally.

And if that’s going to be the case, then that could weigh upon this market. But if we continue to see a lot of interest rate cuts around the world that could help the Aussie under the premise of maybe we’re getting stimulus. But right now, I think this looks a lot like a market that’s somewhat confused.

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