Yahoo Finance AUD/USD Forecast – Aussie Continues to See Choppy Behavior
Australian Dollar vs US Dollar Technical Analysis
The Aussie dollar dropped a little bit early during the trading session on Wednesday. It’s not a huge surprise. It looks like the 0.65 level is offering a bit of support. That being said, we are still very much in a huge consolidation range between the 0.6450 level and 0.6650 above. All things being equal, this is a market that continues to see a lot of noisy behavior and therefore I think it’s difficult to trade.
That being said, short-term pullbacks offer buying opportunities to rally a bit from here. All things being equal, this is a difficult pair to trade unless you are looking for short term back and forth trading. That might be the route here. I don’t necessarily want to get overly exposed. And quite frankly, this is a situation where you are just hoping to get to the outer part of the range in order to fade exhaustion.
If we break down below the 0.6450 level, it’s likely that the US dollar will have taken off against most things, not just the Aussie. If we break above the 0.6650 level, then that would be a major “risk on” signal for other assets. Right now, there isn’t a lot of economic news out there to move the market, so I think we just continue to grind back and forth until we sort out if we can ever break out of this range. Obviously, we will, but right now, there’s no hurry to do so.
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This article was originally posted on FX Empire
