AUD/USD Forecast – Aussie Continues to Chop Around

AUD/USD Forecast Video for 13.12.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar continues to be a mess as we start to march toward the central bank announcements this week. The Wednesday session features the Federal Reserve, while the Thursday session features the Swiss National Bank, the Bank of England, and the European Central Bank decisions. While not directly Australian, it will certainly have a major influence on what happens with the US dollar, which of course is the most important currency in this pair.

We are currently struggling with the idea of the 200-Day EMA, and I do think that we have a situation where the market is more likely than not going to continue to see a lot of noise. The 0.65 level underneath is a major area of support, and of course is backed up by the 50-Day EMA. As long as that holds as potential support, this is a market that I think stays sideways.

Unfortunately, a lot of what we are waiting on comes down to whatever it is Jerome Powell says, or perhaps more importantly, whatever the market thinks he says. With that in mind, it’s very difficult to get overly aggressive at this point, and I think we continue to be held hostage by a lot of nonsense.

Furthermore, keep in mind that it is getting close to the holidays and liquidity will be a major issue. With that being the case, I think you have to be very cognizant of your position size, and recognize that huge positions right now are probably a recipe for disaster. With that being said, I like the idea of range bound trading on short-term charts more than anything else, but once we get past Thursday, we can start to talk about whether or not there is going to be any type of trend. Between now and then, I think we bounce around between 0.65 level on the bottom, and the 0.6625 level above in a very noisy manner.

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