Yahoo Finance AUD/USD Forecast – Aussie Pulls Back From Resistance
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has been all over the place during the trading session on Tuesday after the RBA decided to do nothing. Ultimately, the 0.6650 level above continues to offer significant resistance. The fact that we did pull back from there does suggest that perhaps we are ready to go back and forth in the larger consolidation area.
The 0.6450 level underneath would be a significant support level and with that being said I think this is a situation where the market is going to continue to simply look for some type of longer term directionality. After all, the Australian dollar is highly levered to growth but it’s also highly levered to commodities. It’s also attached to the Chinese economy as well, so all of these things moving around at the same time will have a major influence on how we trade.
On the other side of the equation, you have the US dollar which of course is highly influenced by the interest rates in America which have been stubbornly strong. With that being the case, I think you’ve got a situation where we are more likely than not going to be very noisy and just continue to see a lot of erratic behavior, but I think at this point that we are going to continue to see this area up here as a pretty significant barrier.
And it’s possible that we just end up going back and forth and trade in the overall area that we’ve been in. As a matter of fact, I think that most major pairs are going to be somewhat sideways in general and as we’re at the top of the range, it’s very possible that we could see some exhaustion.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
