AUD/USD Forecast – Aussie Dollar Looking For a Bounce

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen pretty significantly over the last couple of days and Tuesday started out the same, but we are starting to see a little bit of a pushback. That’s not a huge surprise, after all markets don’t go in one direction forever, so at this point in time you would expect at least a bounce. The fact that the market is hovering around the 50-day EMA also comes into the picture, and furthermore, I believe that there is a lot of support underneath there at the 200-day EMA, which happens to be right at the 0.6650 level, an area that has been important

So, with that being said, I think you’ve got a market that is looking very much like a market that is trying to continue the overall trend. If we do rally from here, the 0.69 level above would be a target. If we break down, it’s really not until we break down below the 0.6650 level that I’d be somewhat concerned. And even then, I think it just would show a return to overall consolidation. It could go, I suppose, as low as 0.63.

But that would obviously be a major risk off type of move. As things stand right now, I do think we are trying to turn things around or it’ll be interesting to see how this plays out. We’re a little bit no man’s land right now. We are between two levels of both support and resistance. So, I’m not really keen to be a buyer here. But if you watch the US dollar around the Forex world, if it starts to shrink, it should do fairly well here to the upside, but if the US dollar starts to strengthen, then we probably have more downside ahead of us.

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