AUD/USD Forecast – Australian Dollar Continues to Languish Near 0.65

Australian Dollar vs US Dollar Technical Analysis

As I look at this chart, it’s very obvious to me that the 0.65 level continues to be important. This of course is a large round figure, but it’s also an area where we had previously seen resistance, so a certain amount of market memory comes into the picture. This is an area that extends down to the 0.6450 level as seen previously. So, I think this is more or less to be thought of as a support zone and maybe less as a support line. When I look at the chart from a little bit more longer term perspective, it’s obvious to me that we have been somewhat consolidating over the last couple of months.

And I believe that the top of the consolidation area is closer to the 0.66 level. Breaking above the 0.66 level could send this market much higher in a big FOMO trade. In that scenario, we would more likely than not see US dollar weakness everywhere, and I think it would probably be a pretty obvious trade. Whether or not that actually kicks off remains to be seen, but as things stand right now, I think the safest bet is to simply count on the market continuing this sideways grind. There’s a lot of questions right now about what the Federal Reserve is going to do and if that’s going to be the case then it will translate into a sideways dollar. The Australian dollar of course is highly levered to what happens in China and of course global trade so keep an eye on all of that as well.

All things being equal, I think this is a good range-bound trading opportunity more than anything else between the 0.6450 level and the 0.66 level. Because of this, this is a market that I think will be somewhat neutral for swing traders, but short-term traders will continue to scout it back and forth.

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