AUD/USD Forecast – Aussie Plunges After Hotter Than Expected CPI

Australian Dollar vs US Dollar Technical Analysis

You can see that we had plunged after the CPI numbers came out in America, much hotter than anticipated. That being said, it’s probably worth noting that we were in extreme resistance anyway, so I think we were basically looking for a reason to start selling. The market is currently just below the middle of the overall consolidation area.

So, I wouldn’t be surprised to see a little bit of a bounce later in the day. The 50 day EMA and the 200 day EMA both come into the picture and after a little bit of a magnet for price. But really, I think the thing that you are paying the most attention to is the 0.6650 level above as a resistance barrier and the 0.6450 level underneath as a massive floor in the market. With that being the case, I think you’ve got a situation where we are a little too close to the middle, so you probably don’t want to do too much with this market, but once we get to the outer bands, I think at that point you would have to be interested in fading signs of failure at either one.

If we do break out of this range, then it sets up a 200 point move in either direction. I think over the next couple of days things might be noisy, but I don’t see things changing in the sense that I don’t think we get out of this range anytime soon.

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