AUD/USD Forecast – Aussie Dollar Continues to Look For Support

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially did try to rally a bit during the trading section on Thursday but has given back the gains as the 50-day EMA looks very likely to be a bit of a resistance barrier. If we can break above there, then the market could turn things back around and go looking to the 0.6850 level. Underneath, we have the 0.6650 level, which is also backed up by the 200-day EMA.

So, with that being said, I think you’ve got a situation where sooner or later we are going to see buyers jump into this market. But in general, I believe also this is a market that needs to stabilize. And while we are in the middle of doing this, it does tend to be very noisy.

So, I wouldn’t really be that interested in trading this market right now. But I am looking for some type of impulsive bounce to the upside that suggests that we are going to, in fact, return to the overall trend. A little bit of sympathy here in the Australian dollar seems to be showing up for the New Zealand dollar as the New Zealand dollar has just cratered, mainly, I believe, due to the 50 basis point interest rate cut coming out of the Reserve Bank of New Zealand. But really, at this point in time, a lot of this is going to come down to whether or not risk appetite comes back. So pay close attention to other markets as they can give you a heads up as to what traders feel.

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