AUD/USD Forecast – Aussie Continues to Consolidate Overall

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has been rallying again early during the trading session on Tuesday as it looks like we’re trying to get to the 0.6650 level eventually. With that being said, it’s worth noting that the CPI numbers come out on Wednesday and that will almost certainly have a major influence on where we go next. The Australian dollar could very well run into a brick wall of resistance here and quite frankly it wouldn’t surprise me. Pullbacks at this point in time might send this market back down towards the 50 day EMA, perhaps even as low as 0.6450. We’ll have to wait and see.

I do recognize that this is a market that generally looks range bound, probably for the bulk of the year. With this, it’s very likely that we end up seeing a lot of back and forth as central banks around the world are debating what they’re going to do. The Australian dollar is highly levered to the Asian economy. So, of course, that has a lot to do with what we may see as well.

So, keep that in mind. If we were to break out of this 200 point range, then the measured move is for another 200 points in either direction. The 200 day EMA is currently flat and sitting right in the middle of the consolidation area as well. So, I don’t know what to make of this other than we are simply killing time. Again, I think the best way to trade this might be to take advantage of extremes, if and when we get to an extreme, of the range that we are in and fading signs of exhaustion in either direction.

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