AUD/USD Forecast – Australian Dollar Continues to See Noise
Australian Dollar vs US Dollar Technical Analysis
The Aussie dollar initially rallied during the trading session on Thursday, but as you can see, the market has been somewhat choppy and noisy. And at this point in time, I think we have to look at this as a market that’s hanging around the 0.6650 level. If we can break higher from here, the 0.67 level is an area that has offered a lot of resistance. And I think that’s an area where we continue to struggle.
If we fall from here, the 200-day EMA near the 0.66 level is a major support level. In the short term, I just think we hang back and forth in this market in a choppy kind of region. That being said, if the market does break out of this range, then we could get basically a 100-point move. If the Australian dollar, of course, is driven by commodities, well, the US dollar is driven by the Federal Reserve.
Friday does have the core PCE numbers coming out. And that of course has a major influence on what happens with the greenback. So, Friday could be the day we finally break out. We just don’t know. But as things stand right now, this is more or less about going back and forth in the short term and until we break out, unless you’re a scalper or short term trader, there’s probably not a lot to do here. However, if you like sitting on watching the market for small moves – you might find your niche in this pair.
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This article was originally posted on FX Empire