Yahoo Finance AUD/USD Forecast – Aussie Continues to Meander Overall
Australian Dollar vs US Dollar Technical Analysis
You can see that we initially tried to rally a bit, but then gave back some of the gains to break down below the 0.6650 level. With that being the case, it looks to me as if the market is likely to look for support between now and the 50 day EMA. This is a market that has been very sloppy as of late. And it just doesn’t look like it has anywhere to be. So with that being the case, I think you’ve got to look at this as a market where you can only trade short term. And if that is going to be the situation, then you probably want to break this down to like the 30 minute chart.
Quite frankly, there are better trades out there, and this is a pair that has basically been noisy for two months. We’ve gone straight up in the air, but it’s been just zigzag the whole way. It’s been insane, really. The Australian dollar gets a little bit of a boost from commodities, just as the US dollar gets a little bit of a boost from higher rates in America, and of course, more of a risk-off attitude.
With that being the case, I think you have to look at this through the prism of a market that is higher as far as the consolidation area is concerned, but there’s not enough conviction to the downside either to get overly short. At this point, a lot of the Forex pairs are starting to look like this, and it could just simply be a matter of it being summer and volumes drop. We don’t know, but this isn’t the first time I’ve seen Forex kind of slow in this time of year. The 50 day EMA and the 200 day EMA underneath both could offer significant support if we were to break down below there, then 0.6450 is possible. If we break above 0.6725 then we could break out to the upside.
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This article was originally posted on FX Empire
