AUD/USD Forecast – Aussie Dollar Continues to Consolidate on Wednesday

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied slightly during the early hours on Wednesday as the 0.6650 level has offered enough support to turn things back around and show signs of life. All things being equal, this is a market that is also trading between the 50-day EMA above and the 200-day EMA below.

This is an area that typically causes a lot of noise, so it’s not a huge surprise to see that there’s a little bit of hesitation here. Furthermore, we also have the United States releasing CPI numbers on Wednesday and PPI numbers on Thursday. So, there’ll be a lot of questions asked as to where the Fed is going to be going after this interest rate cut.

This pair also has a lot of risk on versus risk off attitude tied into it. So, I do think you’ve got a situation here where you probably need to pay close attention to the rest of the world. The Aussie has been trading in a very well-defined sideways range over the last year and a half. So, with that being the case, until we break above the 0.6850 level, you have to assume that is more of the same.

On a breakdown from here and below the 200-day EMA, I believe the next major support level is at the 0.6450 level. This is an area that will be watched very closely, and as a result, the market is going to be very jittery in that region.

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