AUD/USD Forecast – Aussie Dollar Continues to Drift Higher
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar initially pulled back a little bit during the trading session on Tuesday only to turn around and show signs of life again. It’s obvious at this point that everybody’s doing everything they can to kill off the US dollar based on the idea that the Federal Reserve is going to start cutting rates. Whether or not that’s enough to justify this action remains to be seen and it has been a vicious back and forth nobody knows what they’re doing type of market.
With that being said, when you zoom out, you can clearly see we are still basically range bound as we have been for a year and a half. And now traders are trying to get ahead of the next big move. I think more likely than not, we are going to see resistance above and that should offer a certain amount of pressure.
With that being said, I find this a very difficult pair to trade because quite frankly, who really knows what’s driving it at this point? I think we’re going to run into a lot of resistance near 0.68. And at that point in time, we may have to make more decisions. I still don’t like this pair at all.
I recognize that 0.6650 could be support, but quite frankly, there are cleaner pairs out there to trade right now than the mess that is seen on the Aussie dollar charts. I believe that this is a market that is going to continue to cause a lot of volatility in the portfolio of many traders as the Aussie is levered to Asia, growth, and commodities.
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This article was originally posted on FX Empire