AUD/USD Forecast – Aussie Dollar Continues to Reach for Higher Levels

Australian Dollar vs US Dollar Technical Analysis

The Australian Dollar has rallied rather significantly during the course of the trading session here on Thursday, as the 0.6850 level has been broken to the upside yet again. This is an area that has been previous resistance and the fact that we have all that wiped out the very negative candlestick from Wednesday is a good sign. The relative strength index is a bit on the high side and the stochastic oscillator is as well because remember, we had been in a major range for some time.

So, these are both worth watching. Nonetheless, if we do get some type of pullback, then it’s likely that there will be value hunters willing to get involved. Most of this comes down to the Federal Reserve and interest rate cuts as well as the US dollar shrinking in general. Furthermore, we have a lot of concerns about the US economy. This generally works against the US dollar for a while, and then everybody panics, and they jump right back into US Treasuries, so we’ll have to wait

In the short term though, it certainly looks as if buyers are willing to come in and pick up value and cheap Australian dollars if and when they get the opportunity. So, you have to assume that will be the way to trade this market, at least for the time being, as it has been so positive. However, you can also be assured that the volatility is far from gone, and I think this will continue to be the case going forward.

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