AUD/USD Forecast – Aussie Continues to Threaten The Resistance

Australian Dollar vs US Dollar Technical Analysis

You can see that we have pulled back just a bit during the trading session on Friday as we continue to respect the overall consolidation range. The 0.6650 level above is a bit of a barrier, but it is an area that I think we will continue to pay close attention to. Underneath we have the 200 day EMA, which sits right around the 0.6550 level. Beyond there we have the 50 day EMA, and then a move down to the 0.6450 level. The 0.6450 level is an area that a lot of people will be targeting on the short side, since it’s been massive support and resistance multiple times in the past.

Keep in mind this pair is highly influenced by risk appetite, so you’ll have to keep an eye on that as well, with the US dollar being preferred in times of concern. It’s difficult to imagine that the US dollar suddenly falls apart, but if it does, that would probably be something that we see industry-wide all over the forex world, and then we would break through the major resistance above and go looking to the 0.6850 level, possibly even 0.69.

At this point though, I’m looking for signs of exhaustion to start fading, assuming that we get them. I also anticipate that this pair, much like many of the other major pairs this year, will be very choppy and sideways, somewhat range-bound to say the least. In order to trade this market, you will have to be nimble, as there is little room to move in this pair at the moment.

For a look at all of today’s economic events, check out our economic calendar.