AUD/USD Forecast – Aussie Continues to See Pressures

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar continues to consolidate on Monday in lackluster trading. The Aussie dollar continues to consolidate and chop around as we see a lot of back and forth trading. Ultimately, the 0.65 level is an area that I think is a bit of a magnet for price and at this juncture, I think you have to look at it through the prism of a market that continues to see the 0.6450 level underneath as support, the 0.66 level above as resistance.

In the meantime, I think you are just looking for short-term trading opportunities if you are involved in the Aussie dollar because quite frankly, we don’t have anywhere to be. With that being said, do pay attention to the fact that the 50-day EMA above is offering a certain amount of resistance right along with the 200-day EMA. The market continues to see a lot of questions asked about the Federal Reserve and what it’s going to do with interest rates.

That being said, we also need to pay close attention to the market and its risk appetite profile due to the fact that the Australian dollar is considered to be more or less a risk on currency and of course the US dollar continues to be a safety currency as long as that is the interplay between these two currencies then this is going to be a market that’s essentially lost because we have so many different things going on at the same time that nobody truly knows what it is they want to do here.

If we do break out of this consolidation area, then I think you have a big move ahead. And if I had to bank on one or the other, it would probably be a breakdown below the bottom. In that scenario, we are more likely than not to go to the 0.63 level. On the other hand, if we were to break above the 0.66 level, then we would go looking to the 0.6750 level, and then eventually the 0.6850 level.

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