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AUD/USD Forecast – Australian Dollar Continues to Consolidate

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially tried to rally a bit during the trading session on Monday but gave back gains as the European session was closed for most countries. So, at this point in time, we’re waiting on the Americans and what they are going to do.

But I think at this point it’s likely that we will continue to see a lot of choppiness. I’m not really looking for a big move, and I think that the 0.64 level will end up being a major, support level. And if we were to break above there, then it could really change things. if we do slice through that in that environment, I would anticipate that we go down to the 0.63 level.

On the other hand, if we turn around and break above the 50 day EMA, we are more likely than not will try to grind to back to the 0.6650 level, which of course is an area that’s been significant resistance really at this point in time. I think you’re hoping that this chart looks almost identical to the Euro right now, you’re hoping for a little bit of a dip, and then perhaps signs of a bounce that you can buy into it would be a swing trade.

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It would be a short term swing trade. But it’s probably about as good as this pair is going to get right now as the Federal Reserve is expected to cut rates. But then again, so are most other central banks. So really, at the end of the day, it’s no harm, no foul.

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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