AUD/USD Technical Analysis

The Australian dollar has rallied during the trading session here on Thursday in the early hours. But really, at this point in time, we have the same problem. It’s the 0.6550 area offering a ton of resistance. Ultimately, I think this is a scenario where traders continue to see a lot of back and forth choppy behavior and I don’t see why that would change anytime soon. After all, we’ve been grinding higher, and grinding is probably the best word here for the market in what it’s been doing over the last couple of months. I believe you have a scenario where eventually we may try to break above the 0.66 level, but I’m not in a rush to get into this pair, mainly due to the fact that it just hasn’t been very dynamic.

It’s just been a grind back and forth. You basically have a slight tilt in a channel, but no momentum whatsoever. So quite frankly, there’s easier ways to short the US dollar. If we were to turn around and break down below the 50 day EMA, then that would be, for me at least, the same as breaking below a trend line and it could send the US dollar stronger against the Australian dollar making this pair drop towards the 200 day EMA possibly even lower.

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