AUD/USD Forecast – Australian Dollar Continues to See Buying in This Range

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Friday as we wait for the Jackson Hole Symposium speeches to come out and more specifically the Jerome Powell speech, which is what everybody will be waiting for. The 0.68 level above is an area that begins about a 50-point barrier that a lot of people will be paying close attention to. If we were to break above that, it would be a very bullish sign. In that environment, I believe that the US dollar would continue to fall not only against this currency, but a lot of other ones as well.

If we turned around and fall from here, the 0.6650 level would be an area that I think could offer a bit of support, especially as the 50-day EMA is sitting right around the same area. If we break down below there, then the 0.6450 level underneath would be your target. Right now, it’s worth noting that the stochastic oscillator is in the overbought condition, and it is crossing over in that area.

So, it does technically signal that we are overbought. In general, this is a situation where I think you continue to see a lot of noisy behavior. And with that being said, I think you probably continue to see erratic short-term trading. I have no interest in getting too big into this position, but if we do break out to the upside, I think that leads to something much bigger.

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