AUD/USD Forecast – Australian Dollar Continues to Grind Back And Forth

Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has rallied a bit during the early hours on Monday as It looks like we are trying to break back towards the top of the overall consolidation area. Quite frankly, the Australian dollar has not been something worth putting a whole lot of faith in recently. Although we have been bullish overall, it has been extraordinarily choppy, while the 50 day EMA and the 200 day EMA underneath should continue to offer support, and the 0.67 level above should continue to be resistant. Ultimately, we are at the 0.6650 level, an area that previously was resistance for the consolidation area. And now I think market memory is going to dictate that this is an area that remains a bit sticky, if you will.

With that being said, I think you continue to see a lot of back and forth noise and it’s going to be a very difficult market to trade for anything more than a short term scalp. So it comes down to the type of trader you are as to whether or not you find any interest here. It’s worth noting that the Australian dollar is highly sensitive to commodities, so that is certainly an upward pressure on the Aussie. But at the same time, it’s also highly correlated with global trading around the world.

And that of course, is something that people were a bit concerned about. It’s especially sensitive to China, but Chinese economic numbers seem to be at least trying to turn things around. So that might be part of what’s been sending the Aussie higher recently as well.

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