AUD/USD Forecast – Australian Dollar Plunges in Early Monday Trading

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen rather significantly during the early hours on Monday to reach down to the 0.6650 level, an area that has been important more than once. Pay close attention to this region because it could give you a bit of a heads up as to what’s going on. The Australian dollar is not exactly one that I think is going to be massively strong at this point, but I don’t necessarily think you should short it either. When you look at this, the market has a lot of noise here, extending all the way down to the 200 day EMA. With that being said.

I think you’re still in a wait and see kind of position. If we can break through all of that and continue to fall, then yes, you would want to be short. But it’s very possible that we get a bit of a bounce somewhere between here and the 200 day EMA. Really at this point, the charts aren’t clear enough to get overly aggressive one way or the other. But if we do bounce from here, and especially if you take out the highs of the Monday session, that would be an extraordinarily strong sign.

Keep in mind, Australia is highly levered to commodities as well as being highly levered to Asia in general. So, with that, I think you have to kind of keep an eye on several different things at the same time. Quite frankly, there are charts out there that are much clearer than the Australian dollar. So, I’m just on the sidelines in this particular currency pair as things stand right now. Of course, I am monitoring it and I will let you know when I see something clear. But right now, it looks like we’re right here trying to make some type of bigger decision.

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