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

Australian Dollar vs US Dollar Technical Analysis

The Aussie fell again during the trading session on Tuesday, as we wiped out the gains for Monday. This is a market that just doesn’t have anywhere to be. There are a couple of currency pairs that I’ve been watching with interest of late that just seem stuck. The Australian dollar is most certainly one of them.

At this point, if we could find value hunters coming in, that’s fine, but the real question isn’t so much as whether or not somebody will buy it. It’s whether or not they can push it above the 0.6725 level. If they could, then maybe we would have some room to move. If we break down from here, we have the moving averages in the form of the 50-day EMA and the 200-day EMA both offering support, so that could come into the picture.

But really at this point, it’s a market that seems to be focused on the 0.6650 level as a bit of equilibrium. The Euro, the Aussie, and a few others just don’t have anywhere to be, and we may be setting up for a very quiet and choppy summer. That’s really not that uncommon, to be honest.

We do have the jobs report coming out on Friday, and that could have a major implication as to what people do with the US dollar. But quite frankly, no matter what seems to happen, we just don’t have momentum. So really, it’s until we get momentum that you can sit on the sidelines or if you wish to trade this market on very short term charts, then possibly you could do that. But really, it’s difficult to get overly excited at this point, mainly due to the fact that there’s no follow through.

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