AUD/USD Forecast – Aussie Continues to Chop Back And Forth

Australian Dollar vs US Dollar Technical Analysis

The Aussie has rallied a bit during the early hours on Monday, but quite frankly, we’re still in the same relatively tight range that we’ve been in for several weeks as the 0.6650 level continues to be a bit of a magnet for price. Ultimately, this is a market that I think should continue to see plenty of noise, and it is a market worth watching, even if we don’t necessarily break out. And the reason is, of course, Australia is a proxy for China. It’s also a proxy for commodities, so that’s part of what has lifted it over the last, say, two months.

Whether or not we can break out remains to be seen, and I would be watching the 0.6750 level for resistance. If we can break above there, then the 0.69 level could be targeted. If we break down from here and drop below the 0.66 level, then we challenge the 50-day and the 200-day EMA indicators, both of which could very well end up being support. In general, I think this is a market that will be noisy and choppy so if you’re a short-term trader it might end up being a good market for you but I really at this point don’t have any interest in trying to hang on for a bigger move.

The market will continue to be noise but if you’re inclined to like the five minute chart, you may have plenty of back and forth opportunities until of course one day we break out of this range opening up a potential 100 point move. Until then, keep your expectations small as far as real estate being covered. But, you know, if you have a short term training system that you like, this might be a good market to be involved in.

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