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AUD/USD Forecast – Aussie Continues to Consolidate in Huge Range

Australian Dollar vs US Dollar Technical Analysis

You can see that we have rallied a little bit during the trading session here on Tuesday, but really at this point in time, not a lot to see here. We are still very much in a consolidation phase. So, most traders will just be looking at this as a potential short-term bounce that they can take advantage of.

The 0.6450 level underneath is a major support level that a lot of people will be paying attention to, and quite frankly, something that I don’t think gets breached easily. However, it is Non-Farm Payroll Friday in a few days, and that will attract a certain amount of attention, and therefore, I think it will keep the market somewhat stagnant. The 50-day EMA above could offer a little bit of resistance right along with the 200-day EMA, but this market definitely has a ceiling at the 0.6650 level, at least at the moment.

And of course, you have to keep in mind that the Australian dollar is highly influenced by risk appetite. So, if risk appetite is strong, typically the Aussie does well. If risk appetite is weak, then generally the US dollar does well. Ultimately, this is a situation where market participants continue to look at this through the prism of back and forth almost like we’re playing tennis. I don’t think that will change this week.

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So, in the short term, we are more likely than not to bounce a bit. I wouldn’t put a huge position on if I did take this trade, but quite frankly, that’s how most major currency pairs look at the moment.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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