AUD/USD Forecast – Aussie Continues to Consolidate

Christopher Lewis
Updated: Jun 20, 2024, 15:43 GMT+00:00

The Aussie dollar stalled a bit in the early hours of Thursday, which makes a lot of sense, as the currency now sits just below an area that has been very difficult to overcome. Nonetheless, there is a massive support level underneath that will continue to be a major factor as well.

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Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has been somewhat hesitant to continue going higher on Thursday, which should not be a huge surprise, considering we are at the top of the overall consolidation phase that the market has been in for some time. So, with that being said, I think you have to look at this through the prism of a market that is just simply going back and forth. So, I’m not a huge fan of putting a ton of money into this market, but I think if you’re a short-term back and forth kind of range-bound trader, this might be your market.

Quite frankly, the 0.67-ish area has offered pretty significant resistance. And underneath, we have the 0.6550 level offering massive support. So, with all of that being said, I like the idea of just simply taking a small position and going back and forth in this market where there is no real directionality at the moment.

This does make a certain amount of sense considering that the Australian dollar, of course, is a risk on currency, and at the same time, the Federal Reserve seemingly is going to keep its monetary policy tight no matter what. So, with that, I think you have to look at this as a market that just doesn’t have anywhere to be. Once we break out of this little rectangle, we’re in, then fine, we may get 100 pip move in one direction or the other, but right now it just doesn’t look ready.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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