AUD/USD Forecast – Australian Dollar Continues to Rally Against Greenback

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar rallied fairly significantly in the early hours on Monday as we continue to grind to the upside. In general, the US dollar is struggling, so this is not a huge surprise, but a short-term pullback, more likely than not, will find quite a bit of support, especially near the 0.6850 level. From a longer-term standpoint, I do think that the Aussie could end up going up to the 0.71 level, a major swing high, but we need to see momentum stick with the Aussie.

It’s worth noting that the US dollar is oversold in general right now, so I think it might be noisy on the way up. But right now, that looks very much like a scenario that it will be accompanied by a lot of chop and noise. But I do think eventually the buyers will take over. If we were to break down below the 0.680 level, then the market could go looking to the 50-day EMA underneath, which of course is an indicator that a lot of people will pay close attention to as it is highly regarded.

Either way, we are a little stretched at this point, keep that in mind, but I do think that as we pull back, there will be plenty of people willing to jump into the fray trying to catch up with the latest breakout. And of course, the idea that the Federal Reserve is going to continue to cut rates has a detrimental effect on the US dollar as well.

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