AUD/USD Forecast – Australian Dollar Falls Into The Weekend

Australian Dollar vs US Dollar Technical Analysis

You can see that we fell rather hard during the trading session on Friday in the early hours as we are plunging into the weekend. However, it’s probably worth noting that this is a market that remains very much range bound overall. And despite the fact that this candlestick is rather negative, the reality is not much has changed.

We still see a lot of support near the 0.6450 level as well as a lot of resistance at the 0.6650 level. The size of the candlestick is rather negative, but ultimately, I think you’ve got a situation where we will eventually have to break out of this area. But until there’s a fundamental reason to think that things have changed, then there’s really no reason to think this is going to be other than a short-term range-bound market.

That’s fine, just make sure that this is the game that you are playing. Ultimately, I do think that we break out of this range, and it could open up 200 points in either direction. But as the Federal Reserve is likely to cut rates and at the same time, the Australians cannot raise them anytime soon, this is a market that might be a bit stuck.

Furthermore, you have to keep in mind that the Chinese economy is suffering a bit and that of course doesn’t do any favors for the Aussie and beyond that, the Aussie is also considered to be a risk on currency. With that being the case we have to look at other markets around the world to give us an idea as to what the Aussie should be doing. While stocks are very bullish, they are about the only thing right now so I think we just continue to bang around in this same 200 point range.

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