AUD/USD Forecast – Australian Dollar Continues to See Chop

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit during the early hours on Thursday as it looks like we continue to struggle. In general, the market is in the top of an overall range, and I do think the Australian dollar just does not have enough momentum to continue going higher. We did shoot much higher during the previous session after the FOMC meeting but gave up gains almost as soon as we got to the 0.67 level, an area that has been massive resistance. Underneath we have the 50 day EMA near the 0.66 level and the 200 day EMA near the 0.6575 level.

I think we’re essentially stuck in this range, so if you are a short-term trader, you will probably love this market. However, if you are looking for a bigger move, you need to see it leave this area to put any serious money to work. Quite frankly, this is a market that I think will remain very sideways and choppy, basically, until it leaves.

Once it leaves, you can have an argument as to which direction we are going to go, but in the meantime, I do believe that we are just going back and forth, and short-term traders will continue to take advantage of a very well-defined range. Remember that the Australian dollar is highly sensitive to global commodity markets, so you have to keep an eye on those as well. And of course, the US dollar is considered to be a safety currency, so it all ties together.

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