AUD/USD Forecast – Australian Dollar Continues to Look Strong
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied rather significantly during the course of the trading session on Friday, as it looks like we are trying to break out. At this point in time, we are trying to threaten the 0.68 level and I think we are more likely than not going to break above that level.
Whether or not we do it by the end of the session remains to be seen, but it certainly looks like there is a lot of wherewithal in the buying pressure of the Aussie, and therefore one would have to assume that sooner or later we will break out to the upside. Short term pullbacks at this point in time should offer value that people are willing to look at, with a 0.67 level underneath I think offering your support.
The Australian dollar, of course, is a commodity market and therefore, if gold and iron both rally, then I think it makes a lot of sense that the Aussie does as well, due to the fact that Australia is such a major exporter of these goods. Beyond that, we also have people looking at the possibility of the Federal Reserve cutting interest rates and if that’s going to be the case, it makes sense that the US dollar would fall just a bit.
Whether or not it gets crushed, we’ll have to remain a little bit patient to see that. But I do think that it is easier to find short term pullbacks to take advantage of in this market than anything else. I have no interest in shorting the Aussie until we break down below the 50 day EMA, which is right around the crucial 0.6650 level.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire