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

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied again during the early hours on Monday as we continue to see a lot of noisy behavior and people jumping in to try to take advantage of the Federal Reserve cutting interest rates last week by 50 basis points. The market has been very noisy over the last couple of weeks, but this 0.6850 level continues to be a major area and a major headache for those looking to try to get long. It is worth noting that the market is in an overbought condition of the market, and we are at the top of an overall consolidation area. But in the same breath, I could say that this is a little bit of a complex inverted head and shoulders.

So, take that for what you will. If we can clear the 0.69 level, then I think the FOMO really picks up and we really start to take off. On the other hand, if we break down a bit from here, then the 50-day EMA and the 0.6650 level both offer support, especially now that the 200-day EMA is sitting right around that area. In general, this is a market that I think is going to pay close attention to risk appetite, so if risk appetite takes off, so does the Australian dollar, and of course, vice versa. Furthermore, it is important to look at the overall Asian and global economy in order to get a grip on the idea of the demand for Australian goods, which generally are thought of as commodity based by traders.

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