AUD/USD Forecast – Aussie Dollar Stabilizes a Bit

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially fell during the trading session on Wednesday but has turned things around to show signs of life as perhaps we are going to try to bounce. Now I don’t necessarily know what to make of this other than we were oversold, and the 50 day EMA is most certainly coming into the picture as well. If we were to break down from here the 0.6650 level, I think could be your target.

Anything below there opens up a significant amount of selling pressure and we probably drop down to the 0.6450 level. On a bounce from here, the market going to the 0.68 level is a very real possibility and a lot of this is just simply going to come down to what traders are going to do with the greenback. After all, everybody is banking on interest rate cuts so now the question is how many?

We do know one’s probably coming in September, but quite frankly, this is a market that I think is going to continue to look to Asia as well. Remember, the Chinese demand situation deteriorating has a direct effect on the Australian economy, and that’s part of what we saw during the Tuesday session. I do think regardless of what happens next, it’s going to be very choppy and noisy, but that’s been the case for two years in this pair. This pair has not been very fluid at all in its movements. You know, we’ve had a couple days here and there where it looked really fluid, but most of the time we’re seeing a lot of wicks and choppiness, and I think that continues to be the case.

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