AUD/USD Forecast – Australian Dollar Continues to See Sideways Drag

Australian Dollar vs US Dollar Technical Analysis

The Australian Dollar did rally slightly during the early hours on Wednesday as we continued to see a lot of noisy behavior. The 0.6650 level continues to be a bit of a magnet for price, and we are above there, at least temporarily. The 0.67 level above is a bit of a resistance barrier and I think we are going to struggle to get above there.

If we can break above there, then it’s possible that we could look to the 0.68 level. This is an area that we are currently trading in and has been rather difficult over the last 30 days or so. The 0.66 level underneath offers support, and of course, the 50-day EMA and the 200-day EMA hanging around that number also put in a bit of a hard floor.

The Australian dollar continues to be relegated to sideways action more than anything else and therefore we have to understand that this is a market that you’re probably going to trade from a short term perspective more than anything else. Ultimately, I do think that scalping is probably something that a lot of traders are doing with this pair, but if the market does break out of this range that we are in, then it does make a certain amount of sense that we could see a much bigger move, but right now we just don’t have the ability to put big money to work easily.

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