AUD/USD Forecast – Australian Dollar Continues to Chop

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit during the trading session on Friday as we continue to see a lot of noisy behavior in this market and that of course makes a certain amount of sense considering that the market also is a reflection of risk on or risk off behavior as the Australian dollar. Is a risk on currency. It’s backed basically by commodity trading and also for what’s going on in Asian economies overall. So, with that being said, the market is likely to continue to be very noisy, which is more or less a proxy for quite a few other markets.

The 200 day EMA underneath is right around the 0.66 level. So, if we do break down below there, the market probably goes to the 0.6450 level. On the other hand, if we rally from here, then the 0.6850 level could be targeted, but we’ll see how this plays out. I think we continue to chop back and forth overall as there are so many different things pushing and pulling global markets around the world that we’re just going to see more of the same choppy, nonsensical behavior that we’ve seen for several months now.

Because of this, I am fairly ambivalent and neutral in this currency pair, and quite frankly think that unless you are trading this market from a short-term perspective, it will be difficult to get overly aggressive one way or the other.

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