AUD/USD Forecast – Aussie Continues to Be Stuck in a Range

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has done very little during the early hours on Thursday and I suspect that will continue to be the case as the market is hanging around the top of an overall consolidation area. With that being the case, I think you have to pay close attention to the last five candlesticks and what they may or may not be doing.

The Friday candlestick of last week formed a massive shooting star that if we could break above it, could be a very strong sign. At that point, I would anticipate that the Australian dollar goes looking to the 0.6750 level, possibly even to the 0.69 level. If we break down below the hammer from the session on Tuesday, that would essentially be breaking below the 50-day EMA, opening up a move to the 0.65 handle.

Either way, you’ve got an area where market participants continue to see a lot of back and forth and indecision. I would say that the market possibility of a false breakout is pretty high here. Quite frankly, there’s nothing to do other than to short-term range-bound trade. Unfortunately, sometimes markets just get like this, they don’t have any real reason to be mobile, and we may be in that type of range right now.

That being said, if we break above the shooting star from last week or the hammer below the hammer from this week, then you’ve got a real trade on your hands. Until then, it’s probably just a lot of Brownian motion and just going nowhere. Ultimately, keep in mind that the Australian dollar is a risk on currency, so pay attention to global sentiment.

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