Yahoo Finance AUD/USD Forecast – Aussie Continues to Test Moving Averages
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar pulled back a bit during early trading on Tuesday, and perhaps gravity has come back into the picture. The 200 day EMA seems to have been a barrier, but at the same time, you also have to keep in mind that we have the FOMC meeting that is kicking off. This of course could cause a lot of noise eventually.
And then, of course, the subsequent interest rate decision, the statement, and most importantly, the press conference. I think all that’s going to throw the dollar around quite a bit. So, it’s not a huge surprise that we’ve had a little profit taking early in the day. We are essentially in the middle of the previous consolidation area. So, I think there’s a lot of noise here as well.
If you’ve been watching me over the last couple of days, I’ve stated that these long wicks that continue to appear at the top of candlesticks, although impressive in the sense that we continue to go higher, it does show you that there is a lot of overhang. I do think eventually we drop again, but this is probably a situation that’s about as neutral as it gets. In this scenario, I am more likely than not just going to be on the sidelines overall.
And of course, with that FOMC press conference, I think that’s going to tell us where this pair is going. In the meantime, the 0.6650 level would be a major ceiling, just as the 0.6450 level would be a major floor. We’re basically right in the middle of that region, and therefore I think we are close to “fair value” as the market sees it.
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This article was originally posted on FX Empire
