AUD/USD Forecast – Aussie Dollar Continues to See Support Just Below Current Levels

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially pulled back a bit during the trading session on Thursday, but continues to find support underneath and I think at this point in time it looks very likely to be a scenario where you are just going to continue to see the selling pressure abate. That does make a certain amount of sense considering that the market is so oversold and therefore you have to ask the question, how much more downward pressure can there be without some type of bounce?

And I think that’s essentially what we are getting ready to see. On a bounce, I think the 200-day EMA comes into the picture, and then after that, the 0.6650 level. This area has been very important over the longer-term, and therefore it is the same area that I think the market will respect.

Ultimately, this is a market that I think will be very noisy, and I do believe that the 0.6450 level underneath will be an area of a floor in this market, if you will. Breaking down below that level would be extraordinarily negative, but it’s not something I see, especially considering how the markets have shown themselves to be so resilient just below. Whether or not the bounce that we are about to get is going to be important remains to be seen, but at the very least, I think we might see some relief for the Australian dollar.

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