AUD/USD Forecast – Australian Dollar Continues to Chop Back And Forth

Australian Dollar vs US Dollar Technical Analysis

The Aussie Dollar has gone back and forth during early trading on Tuesday as we continue to see a lot of questions asked about the market. With that being said, the market is going to continue to be very noisy, but the 0.6650 level is an area that I think a lot of people are paying close attention to. With that being said, we are also dancing around the 50-day EMA as well as the 200-day EMA underneath offering support, so one would have to think that they’ll probably be buyers.

The market break into the upside opens up the possibility of a move to the 0.68 level, possibly the 0.6850 level. If we break down below the 200 day EMA, then the market is possibly going to go down to the 0.6450 level where I see major support. Keep in mind that the Australian dollar is highly levered to the commodity markets and of course Asia.

So, we’ll have to see what the Asian economies are doing, as well as what commodity markets are doing. The US dollar of course is considered to be a safety currency, so if we get a little bit of risk-off behavior, that tends to punish the Australian dollar, at least against the greenback. I would anticipate a lot of choppy behavior, but at the end of the day, we’re in a larger consolidation area.

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