AUD/USD Forecast – Aussie Dollar Plunges in Early Wednesday Trading

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen a bit during the early hours on Wednesday to reach towards the 0.6450 level, but we did turn right back around and bounce. Because of this, it looks like we are trying to settle into some type of range in order to sort out where we go next. Keep in mind that the Federal Reserve has a meeting during the day on Wednesday in the late hours, and that of course will have a major influence on what happens with the greenback next.

This is probably more about the US dollar than the Australian dollar at the moment, so you do need to keep in mind that traders will be trading the US dollar in a similar fashion against most assets, at least in the next day or two. With all of that being said, the 0.6450 level underneath for me is a major support level. So, breaching that would be a very dovish turn of events. On the other hand, if we rally from here, we could see a move towards the 0.6580 level and then the 0.6650 level.

That would obviously need dovish U.S. dollar news, probably in the form of the Federal Reserve. But keep in mind, Friday we also have the jobs report coming out of the United States, which we’ll also have it say. So, in other words, I think you’re going to see a lot of choppy volatility in the Australian dollar over the next couple of days.

For a look at all of today’s economic events, check out our economic calendar.