AUD/USD Forecast – Australian Dollar Continues to Rise

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Australian Dollar vs US Dollar Technical Analysis

The Aussie dollar has rallied significantly during the trading session on Thursday in the early hours, but now it looks as if we are starting to threaten a major resistance barrier and because of this, I think we have a situation where traders are going to continue to be a bit cautious in this area. After all, this is a market that has shown itself to have a lot of issues in this vicinity. And with that being the case, you have to think that sooner or later sellers come in. However, if we were to break above the 0.6650 level, then the market could take off to the upside.

Keep in mind that Friday is the jobs report and therefore I think a lot of people will be a bit cautious in this area, so I’m not necessarily willing to put a lot of money into the market yet. However, if we were to break out and stay above there on Friday, then it becomes a different situation altogether, and I think the Aussie could go as high as 0.69. More likely than not, I believe that we will probably pull back from here, and perhaps even drop all the way back down to the 0.6450 level if we continue this overall consolidation. I don’t even think we go that far to the downside, I just think that we are a little bit stretched in the short term and unless there’s some type of massive sell off in the US dollar overall, I just don’t see why the Australian dollar itself will be a particularly interesting currency.

Keep in mind that it is highly tied to global trade, commodity markets, and of course, the Asian economy itself. So, you have to keep an eye on all of that. With that being said, I remain neutral, but I am very cognizant of the fact that we are fairly close to an area that could signify a breakout. That being said, if we are above that level late Friday, then I think it’s an absolute buying opportunity.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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