AUD/USD Forecast – Aussie Dollar Continues to Reach Towards a Ceiling

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally during the trading session on Wednesday, but it looks like the 0.6650 level continues to offer a bit of resistance. Furthermore, you have to look at the last week and a half or so and realize we have bounced rather significantly. So, it’s not a huge surprise to see that perhaps the market is struggling to continue going higher.

That being said, if we can get a daily close above the 0.6650 level, then I think it opens up a move to the 0.6780 level. Otherwise, it would make a certain amount of sense to pull back from here, perhaps trying to find the 0.6550 level as it’s basically in the middle of this consolidation area that we have been banging around in since the beginning of the year, most of the time.

The Australian dollar of course is highly sensitive to China, commodities and global growth. And there are a lot of questions on all of those. So, I think that continues to add a bit of volatility in the market. And despite the fact that we have had this very vicious bounce, when you look at where we have fallen from, I don’t know that it changes anything other than it tells you how much volatility there is around the world. And it’s of course showing up here in the Aussie dollar markets, especially against the United States dollar, which of course is a major safety asset that people run to in times of trouble.

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