AUD/USD Forecast – Aussie Gives Up Early Gains

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially shot higher during the trading session on Thursday, as we continue to see a lot of volatility in the currency markets overall. Keep in mind that it did initially gain due to the fact that the Federal Reserve has pretty much reiterated its policy of likely cutting three times later this year and that of course put downward pressure on the US dollar. However, since then we have seen a repudiation of that and therefore, I think you’ve got a situation where not much has changed.

We are still very much in the same consolidation region that we have been in for a while and therefore I look at it through the prism of a market that will have to make a bigger decision, but it doesn’t have to do it right now. 0.6650 is an area that I think continues to be important as resistance. And I believe that there are a couple of areas worth paying attention to underneath, but the most important one at this point is 0.6450, giving us a 200 pip range.

We are just simply chopping back and forth, and quite frankly, that’s something that we are seeing in a lot of currency pairs involving the dollar at the moment. So, with this, I think we remain somewhat range-bound and ambivalent as to where the Aussie goes. However, it is worth noting that there are a lot of changes to central bank policies coming in the next few months, so the volatility and momentum will likely pick up a little later this year.

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