AUD/USD Forecast – Aussie Dollar Continues to Bore Traders
Australian Dollar vs US Dollar Technical Analysis
The Aussie dollar continues to just bounce back and forth in lackluster, just meaningless trading between 0.67 above and 0.66 below. If you are a short-term trader who can sit and babysit the charts, this is an excellent scalping market because quite frankly, we don’t have anywhere to go, and I don’t know if that’s going to change anytime soon.
We’re in the midst of summer, which isn’t typically a very volatile time of year, but it’s not typically a time of year where you see a lot of big moves. Because of this, you have about a 100 point range to trade in, and if you are short-term inclined, this is your market. However, for those of us that try to get a little bit more out of a move than 20 pips or so,
This is a market that’s really not worth bothering with. There are other markets out there moving much more rapidly, much more rapidly than this pair. So really at this point, I think you just have a lot of back and forth nonsense. Maybe it’s because the interest rate differential wasn’t crazily spread out. Maybe it’s just that people are looking at commodities as a potential hedge against inflation and therefore the Australian dollar gets a little bit of a boost.
Or maybe it’s just because nobody knows what to do. I think if you look at the underlying fundamentals for a lot of markets, I think people not knowing what to do is the actual answer at this point. You can see that we have been behaving like this for some time, even when we do trend, we chop. This has become the Euro against the dollar essentially. So therefore, I’m not looking for big moves.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire