AUD/USD Forecast – Aussie Dollar Continues to Hang About The Same Level

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar continues to go back and forth as we hang around the 0.6650 level an area that has been important previously and of course we have to keep in mind that the market is currently between the 50 day EMA above and the 200 day EMA underneath. At this point in time, if the market were to break down below the 200 day EMA, then I think the market could go looking to the 0.6450 level. This would obviously be a bit of a risk off move, and you would have to pay close attention to that because you would probably see risk assets around the world take it on the chin.

On the other hand, if we break above the 0.67 level, then it’s more of a risk on move. And we can see the Australian dollar go looking to the 0.68 level, perhaps even the 0.6850 level after that, which is the top of the larger consolidation range. The Australian dollar is likely to continue to see a lot of volatility and questions about Asia, which of course has a major influence on Australia, but we also have to keep in mind furthermore that the market also in Australia looks at the whole commodity sector and whether or not global demand will be picking up. Right now, it doesn’t look so hot. But on the other side, we have the Federal Reserve cutting. So, it’s putting a little bit of a floor in this market in the short term.

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