AUD/USD Forecast – Aussie Continues to Look For Life

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has chopped around back and forth during the trading session on Friday as we are just hanging around the 0.6650 level. This is an area that’s been a little bit of a magnet for price lately and quite frankly, I just don’t see anything on this chart that makes me believe that anything is going to change anytime soon.

We have a situation where gold’s doing very well and that helps the Australian dollar, but at the same time, the Federal Reserve continues to be very tight with its monetary policy. With that being the case, I think you’ve got a situation where we just bounce around and try to sort things out. But this is a market that I think given enough time, we’ll probably continue to see a lot of indecision, with the 0.6720 level above offering significant resistance.

Underneath we have the 0.6575 level offering support. In general, this is a scenario where we continue to see just the market go back and forth on the latest whim. I think if you’re a short-term range-bound trader, this is a market that you’ll love. You are essentially able to trade on something like the 30-minute chart and just go back and forth, at least until the market breaks out. If and when it does, then we might see a 100 point move in either direction. We aren’t too sure about the direction yet, but the pressure certainly must be building at this point in time.

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