Yahoo Finance AUD/USD Forecast – Australian Dollar Continues to Consolidate
Australian Dollar vs US Dollar Technical Analysis
The Australian Dollar has pulled back just a bit during the early hours on Monday as we continue to just bounce around. There’s really not a lot to do in this pair and quite frankly it’s one of my least favorite pairs at the moment.
The 0.6650 level seems to be a bit of a magnet for price. So, if you are a short-term trader and are sitting there scalping the market, this might be a good pair for you. However, if you were a little bit busier in life, like so many of us, you will be looking to swing trade, which is really difficult to do in this type of environment. Now, I do believe that we will eventually break out of the roughly 100 point range that we have been in.
And once we do, we should get at least another 100 points in either direction, possibly even further than that. But as things stand right now, the Australian dollar is rather stagnant, mainly due to the fact that nobody really knows what’s going on with global growth and commodity demand. Furthermore, the Aussie dollar is highly levered to the Asian economy. So, you have to be aware of that as well.
All things being equal, I’m very neutral on this pair. So neutral in fact that I check the charts maybe once a day and see if we’ve left this range. If we haven’t, there isn’t a whole lot to do unless of course you’re trading something like the 15 minute chart. Then you can make an argument for trying to trade back and forth. But for most of us, that’s probably not going to be much of an option.
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This article was originally posted on FX Empire
