AUD/USD Forecast – Aussie Continues to Look Lackluster
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar tried to rally initially during the trading session on Tuesday, but continues to struggle yet again, near the 0.67 level as we are just simply stuck. And with that being said, I think you have to look at this through the prism of a market that’s just going to continue to go back and forth. It will continue to show signs of hesitation to get above 0.67, but it will also show signs of support closer to the 200-day EMA.
The market continues to be very sideways, mainly due to the fact that I think people are still waiting around to see what the Federal Reserve is going to do, and of course, people are not overly sure what to do about commodities and global growth. With that being said, market participants have to deal with a scenario where traders are just going to be short-term focused and that’s fine.
If you are short-term focused, the market has offered a great little area to trade back and forth, but you have to be willing to babysit the charts. If we were to break down below the 200-day EMA, which is just below the 0.66 level, then we could drop down to the 0.6450 level. If we can clear the 0.67 level on a daily close, it could open up a move all the way to the 0.6875 handle. However, right now, it doesn’t seem like we have any momentum one way or the other.
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This article was originally posted on FX Empire