AUD/USD Forecast – Aussie Dollar Continues to Threaten a Move Higher
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied slightly during the course of the early hours on Monday, but this is just more of the same. It looks like we’re chipping away at significant resistance near the 0.68 level. If we can break above this level, then the 0.6850 level gets targeted after that, and then I think we’re a little bit freer to go higher. That being said, when you look at the last couple of weeks has been a lot of stretching to the upside, but not enough to really pressure the market higher.
I think a short term pullback does make a certain amount of sense, but it certainly looks as if the Aussie has been basically relentless. If we can break down a little bit from here and perhaps drop towards the 0.67 level, then you have the possibility of value play. Anything below there then starts to threaten the 0.6650 level where the 50 day EMA sits, and of course, an area that has been a significant magnet for price.
Ultimately, this is a market that I think does try to go higher, but a lot of this may have a little bit to do with the knock on effect of commodities such as gold, iron, etc. rallying on the reflation trade. That’s not a good thing, but it is a thing at this point.
I just think we’re getting a little stretched. We’ll see whether or not we can get another surge higher, but we have a series of lack of news over the next couple of days that I think is going to be considered important enough to, really push things to the upside, at least not suddenly.
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This article was originally posted on FX Empire