Yahoo Finance AUD/USD Forecast – Aussie Dollar Continues to Bounce Around in a Small Range
Australian Dollar vs US Dollar Technical Analysis
The Aussie Dollar on Tuesday has rallied slightly, but it is in a range of very choppy behavior, and I think we have a continuation of a certain amount of indecision. The market continues to pay close attention to the 0.67 level with the 0.66 level also being an area that matters. As we trade in this range, it makes a certain amount of sense that the 0.6650 level continues to be a bit of a magnet for price. That’s also an area that previously had been resistant, so I do think there’s a certain amount of market memory attached to it anyways. Keep in mind that the Australian dollar is highly levered to commodities, so that’s part of what’s giving it a boost, but at the same time.
We have suddenly had a serious lack of geopolitical concern. So that has helped the Australian dollar, but if headlines flare up again, that could very well send the US dollar much higher and therefore drag this pair down. I think this is a market that’s currently looking for some type of directionality and confidence, and it just doesn’t have it.
So, because of this, I think we will continue to trade in this 100 point range. Once we break out of it, then we have other places we could go to like to the upside, we could go to the 0.69 level to the downside, we could end up at the 0.6450 level. In general, this is a market that is currently short term based.
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This article was originally posted on FX Empire
