Yahoo Finance AUD/USD Forecast – Australian Dollar Remains in Consolidation
Australian Dollar vs US Dollar Technical Analysis
Taking a look at the Aussie dollar it looks like we’re just going to continue to go back and forth at this point and that does make a certain amount of sense considering that the market is right in the middle of the consolidation range, with the 0.6650 level above being a major resistance barrier and the 0.6450 level as support underneath. The 50 day and 200 day EMA indicators are relatively flat, and we are hanging around those indicators. So, I think at this point, it’s a market that just doesn’t have anything to do. All things being equal, this is a market that I think just doesn’t have anywhere to be yet. And because of this, you’re just playing it back and forth.
A lot of this comes down to the indecision on whether or not the Federal Reserve is going to be cutting rates this year and how often. There is a lot of noise around that and of course, it has a major influence on the US dollar. The Chinese economy is a bit sluggish so that works against the Aussie dollar. And at the same time, the Aussie dollar is sometimes thought of as a proxy for gold, which has been doing very well. So, in other words, we have a lot of pressures in both directions, and I think it keeps us in this relatively well defined range for the time being. If we were to break out, we could have a big move, but I just don’t see it at the moment.
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This article was originally posted on FX Empire
