AUD/USD Forecast – Aussie Rallies Reaching Towards Highs

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied just a bit during the trading session on Thursday, breaking above the 200 day EMA. At this point in time, it looks like the market is trying to reach the 0.6650 level, which is the top of the overall consolidation area. If we can break above there, then it would obviously be a very bullish sign, but as we head into the non-farm payroll number on Friday I do think there is a real chance that perhaps the market could pull back towards the moving averages in the middle of the rectangle that we’ve been trading in.

Underneath we have the 0.6450 level which is massive support, so at that point I think if we were to break down below that level, it would be a big deal. Once we get the job numbers, maybe we break out of this 200 point range and if and when we do, it does open up another 200 points in one direction or the other.

Keep in mind that the Aussie dollar is somewhat tied to gold so that might be part of what’s going on here as well. But at the same time, gold’s a little overdone. So, I don’t know if that will come to save the Aussie from pulling back. In general, I don’t see a lot of change in the markets right now. I think a lot of currency pairs are still consolidating overall and that might be what’s going on here. It’s just we happen to be closer to the top of the consolidation phase than the bottom.

For a look at all of today’s economic events, check out our economic calendar.