AUD/USD Forecast – Australian Dollar Continues to Frustrate

Christopher Lewis
Published: Jun 18, 2024, 12:40 GMT+00:00

The Aussie dollar continues to see a lot of noise overall, as the market simply cannot seem to find its footing in either direction. At this point, you are going to either be waiting for clarity, or trading very short-term charts.

In this article:

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has gone back and forth during the course of the trading session so far on Tuesday as we continue to hang around the same general vicinity. The 0.6650 level above has been a bit of a bag net for price, but we also have the 50 day EMA underneath, right along with the 200 day EMA underneath there. All things being equal, this is a market that I think continues to be very noisy and very choppy, mainly due to the fact that we just don’t have any real catalyst to get moving.

After all, we have the Australian dollar, which is highly sensitive to the global growth situation, which is going well, but at the same time, there are a lot of cracks in economies around the world. The US dollar, of course, is highly sensitive to the Federal Reserve, which as time goes on, it looks less and less likely that we’re going to see cuts, or if we do see a rate cut, it is going to be one between now and the end of the year.

Australia is also highly levered to Asia, which is a bit of a mixed bag at the moment. So therefore, it just looks like we don’t have anywhere to be. So with that being said, the market is more likely than not going to continue to bounce around in the same general vicinity that we are in. I’m quite frankly waiting for some type of impulsive candle to fall, but really at this juncture it just doesn’t look like we have a whole lot in the way of momentum.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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