AUD/USD Forecast – Aussie Dollar Continues to Bounce Around

Christopher Lewis
Published: Jun 14, 2024, 13:22 GMT+00:00

The Aussie continues to be very choppy as the markets simply do not seem to have anywhere to be. Because of this, I suspect that a lot of people are out there trading the pair on the short-term charts, simply going back and forth at this point.

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Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen a bit during the early hours on Friday, but at this point in time, it looks like the market is testing the 50 day EMA and then possibly the 200-day EMA underneath there. In general, this is a market that I think continues to see a lot of noisy behavior and at this junction, the 0.6650 level continues to be a bit of a magnet for price.

Above there, we have the 0.67 level, which has offered quite a bit of resistance. But if we were to turn around and break down below the 200-day EMA, then we may reenter the bigger consolidation phase. Quite frankly, this is a pair that, unless you are going to trade very short-term charts, it’s very difficult to get involved in this market. I believe at this point in time, it is a market that’s trying to form some type of bullish flag, but if we break down below that 200-day EMA, it gives that up and then we go nowhere.

Keep in mind that the Australian dollar is one of those currencies out there that will be highly sensitive to Asian growth and of course global growth. Because of that, I think there’s a lot of indecision out there and that’s exactly what we are seeing in this pair. I am not sure if and when this changes, but when it does, it could lead to a much bigger move eventually. This pair continues to be difficult to trade on the daily chart.

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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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