AUD/USD Forecast: Australian Dollar Finds Buyers on Friday

• The Australian dollar has initially dipped during Friday trading, only to turn around and find plenty of support just below the 0.66 level.
• Furthermore, we also have the moving averages underneath that should continue to support this market, meaning the 50-Day EMA and the 200-Day EMA.
• Whether or not they hold remains to be seen, but it is a certain level that I am watching in this market going forward.

The 0.6650 level above continues to be resistance, so we can break above there, she thinks sense that we could test the major downtrend line that comes off of the longer-term charts. With that, breaking above the 0.6750 level would open up the possibility of a much bigger move. On the other hand, if we break down below the moving averages, then it’s likely that we could go down to the 0.6450 level underneath.

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Technical Analysis

The technical analysis in this market is more or less neutral, and right now I think it’s very difficult to get overly excited about trading this market. However, if you are a short-term trader you can use the moving averages and the 0.6650 level as a little bit of an area to play back and forth. That being said, I would not put huge positions on, because choppy and sideways markets like this typically explode sooner or later in the lesson you want is to get absolutely crushed based on some type of geopolitical headline that you could have never seen coming.

Looking at this market, it’s probably worth noting that the Australian dollar is highly levered to commodities and of course Asia. Because of this, it very rarely has anything to do with Australia in general, despite the fact that it’s the Australian dollar we are talking about. On the other side of the Pacific Ocean, we have the Federal Reserve which could keep its monetary policy tight for quite some time, and that could put a bit of a dragon this market as well. Overall, I am essentially neutral in this market.

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