AUD/USD Forecast – Australian Dollar Continues to See Overhead Resistance

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally a bit during the early hours on Friday, but we continue to see a lot of resistance between the 0.68 level and the 0.6850 level, an area that has been historically important multiple times. So, at this point, we have to find a reason for the US dollar to continue to sell off the way it has. I suspect at this point we also have to worry about momentum running out. That’s exactly what the chart looks like. Despite the fact that we have seen several attempts to push higher and higher, we have not been able to actually gain traction.

If we were to turn around and break down below 0.675, zero level, then it’s possible that we get a deeper correction. If we break above 0.685, zero level, then it’s likely that the Aussie dollar goes looking to the 0.69 level, possibly higher than that. All things being equal, this is a market that is going to continue to be driven by external factors, such as risk appetite, China. commodities, all of the usual things that would drive the Australian dollar.

The RBA does not look likely to start cutting rates as quickly as the Federal Reserve, and that’s exactly what you are seeing show up on the chart. That being said, though, if the Federal Reserve starts cutting rates rapidly, that might be a bad thing economically. That might show that there’s something seriously wrong, and in that environment, the US dollar is bought hand over fist as a safety currency.

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