AUD/USD Forecast – Aussie Continues to Drop Overall

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen yet again to break well below the 0.6650 level. We are now approaching the 200 day EMA, which of course is a technical analysis indicator that a lot of people will pay attention to as far as trend defining. With that being the case, I do like the idea of waiting to see if we see some type of bounce and turnaround.

But really at this point, I think you’ve got a situation where you can’t be a seller, mainly because you’ve missed most of the pullback, but you also have to recognize that somewhere around the 200-day EMA, which is also at the 0.66 level, you will have a lot of potential support. The Australian dollar, of course, is driven by commodities and Asia, so with that being the case, the market is likely to continue to be very noisy, but the Chinese cutting interest rates certainly seems to have had a bit of a negative effect on this pair, as the Aussie is often used as a proxy for the Chinese yuan by Forex traders and investors.

On the other hand, if we turn around and break back above the 50 day EMA, I do think that FOMO will come in and we’ll try to push this pair back towards the 0.68 level from where we fell. Either way, I don’t really like shorting quite yet because we still have quite a few barriers underneath that could come into the picture and support the Aussie.

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