AUD/USD Forecast – Aussie Dollar Seems Somewhat Stagnant

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar did rally a little bit during the trading session on Monday in the early hours, but it looks like it’s going to give a lot of those gains up. At this point I think we are looking for some type of support to continue the upward momentum, and it’s probably worth noting that the 50-day EMA sits near the 0.6750 level, meaning that it is not that far away, and I do think a certain amount of technical support will probably be found there. If that is in fact going to be the case, then a bounce makes sense. The 0.6850 level above would be an area that a lot of people would be paying attention to, because it’s been important in the past.

But when you look at the trajectory of the Australian dollar, it has been choppy, but positive more than anything else. For what it is worth, we are getting close to a crossover in the stochastic oscillator on the daily chart, but we are just starting to drift a little lower on the weekly. When I look at the weekly chart, it is worth noting that we have pulled back from a major resistance barrier.

So, I still think that there is a certain amount of downward caution to be had here while it’s not necessarily set up for a selling opportunity quite yet it is worth noting that the previous couple of sessions have been rather ugly, and typically moves like that tend to not happen in a vacuum and they do tend to have a little bit of follow-through Either way, I think the 50-day EMA and the 200-day EMA down at the 0.6650 level both have potential to support the market quite a bit.

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