AUD/USD Forecast – Aussie Dollar Quiet to Kick Off The Week

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth in the early hours on Monday, as traders really aren’t pushing the markets around too much. And that does make a certain amount of sense considering that it is Labor Day in both Canada and the United States. So, a lot of major players aren’t even in the marketplace. That being said, we are at the top of a larger consolidation area, and I think that comes into the picture as well, with the 0.68 level of bond being an area of potential resistance that I think extends to the 0.6850 level. If we get above that level, then we go much higher.

At that point, I think you have a true breakout, and you probably see the US dollar suffering against most currencies, not just the Australian dollar. If we pull back from here, then the 0.6650 level, I think is a significant amount of support just waiting to happen. We are stretched, but we are also grinding back and forth. So, when you get an overstretched condition like we have in this market right now, one of two things typically happens.

You either go sideways to work off the froth via time, or you pull back in order to offer value. At this point in time, we will have to wait to see what happens, but I suspect one of those two things are going to be the short-term outlook for the Aussie dollar.

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