AUD/USD Forecast – Aussie Dollar Continues to Look Noisy

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the early hours on Wednesday, but it continues to see a lot of noisy behavior and perhaps a bit of resistance. All things being equal, the 0.67 level underneath should continue to offer support just as the 0.68 level above should offer resistance.

Ultimately this is a market that I think given enough time will probably have to make a longer term decision, but we have broken above the downtrend in a symmetrical triangle that I’ve been following for months so, all things being equal, it looks like the Aussie should at least technically speaking continue to go higher.

If that’s going to be the case, then this could end up being a short-term buying opportunity. Keep in mind that the Australian dollar is highly levered to commodities and of course Asia, so that comes into play as well, but it looks like the US dollar in general is being hammered a bit by other currencies such as the euro. So, it all ties into a higher Australian dollar level given enough time, at least as things stand right now.

If we were to break down below the 0.6650 level, then we have to re-evaluate the whole setup. At that point in time, I would have to look at the other currency pairs out there and see what the greenback is doing on the whole. Ultimately, this is a market that will continue to follow interest rate moves and the idea of what the Fed will be doing in the next few months.

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