AUD/USD Forecast – Aussie Dollar Continues to See Upward Pressure

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has broken higher during the trading session on Tuesday as the 0.6850 level continues to be a major barrier. In general, I think this is a market that if we do get the occasional pullback, I do believe that traders will be looking at this as a potential opportunity to take advantage of cheap Australian dollars.

Now, this I believe also is all about the US dollar and not so much the Aussie dollar as the Federal Reserve has decided to cut interest rates, I do think that we are going to continue to see the US dollar struggle a bit, unless of course we get in a situation where there’s some type of panic. There is a lot of noise in this area, so it’s not like it’s all free and clear, and we are a little overdone. But when you look at this market, you could make an argument for an inverted head and shoulders, a complex one, but an inverted head and shoulders, nonetheless.

I do think that if we can break above the 0.69 level, that’ll be the final nail in the coffin, and we go much higher. I don’t have any interest in shorting, at least not at the moment, but if we did break down the 50-day EMA would offer a bit of support right along with the 0.6650 level after that. Keep in mind that the Australian dollar is highly levered to gold, the global risk on risk off type of situation, and of course the Asian economy.

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