Yahoo Finance AUD/USD Forecast – Aussie Continues to Look Rangebound
Australian Dollar vs US Dollar Technical Analysis
The Australian Dollar has pulled back just a bit during the course of the early hours on Tuesday, but we have turned around to show signs of life again as we continue to bounce around the 0.6650 level. This is a market that I think simply has nothing to do at this point. And as a result, if you were a short term trader, you probably just go back and forth. It’s about a 100 point range and that’s something that we need to pay close attention to.
With that being the case, the market is going to continue to be a situation where you have a lot of traders on short-term charts just kicking this thing around. The Australian dollar of course is highly sensitive to the commodities market, so you’ll have to keep an eye on that, but you also have to pay attention to Asia itself. After all, Asia is highly dependent on Australian commodities, so it all ties together.
Furthermore, the US dollar is considered to be a safety currency, so pay close attention to that situation where if people are starting to go toward safety, then the bond market picks up and then the US dollar is strengthening. The 50 day EMA sits underneath, and then after that we have the 200 day EMA offering even more support. The 0.67 level above has been significant resistance. If we are able to break above there, then we could go to the 0.685 zero level, but right now it looks like the market is just simply killing time going back and forth in summer doldrums.
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This article was originally posted on FX Empire
