AUD/USD Forecast: Continues to Look Choppy

Ultimately, the Australian dollar rallied during Tuesday’s trading session, but there is significant resistance above that could come into play. 

• The AUD/USD rallied during Tuesday’s trading session to reach the 50-Day EMA, but it is worth noting that there is significant resistance above that could come into play.
• The market has been bouncing around between the 0.66 level underneath and the 0.68 level above.
• This is a market that is likely to continue seeing choppy behavior, making it interesting to see where it will kick off from.

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There is a bit of an argument for a bearish flag, although it is stretching it a bit. If the market breaks down below the consolidation area, it could potentially send the market down to the 0.65 level. If it breaks below that, the market could continue going down from there. This is a market where traders are likely to fade rallies, but in the short term, it looks like there will be more consolidation than anything else.

Traders should keep in mind that the Australian dollar is highly sensitive to the commodities markets and the global growth of economies. If the economy starts to slow down, it is likely that we would see the Australian dollar suffer as a result. The Australian economy is highly leveraged to export of hard commodities such as aluminum, copper, gold, and the like. It is also highly leveraged to the Chinese mainland economy, which seems to be doing better now.

Either way, traders should expect to see a lot of volatility and choppiness in the market. The 0.66 level and 0.68 level will be useful guides to where the market may go in the short term. However, the market looks a bit heavy, and the downside may eventually prevail. If it does, we could see a flush lower and a move down to the 0.65 level, perhaps even followed by the 0.64 level.

Ultimately, the Australian dollar rallied during Tuesday’s trading session, but there is significant resistance above that could come into play. Traders should expect to see choppy behavior in the market, and it will be interesting to see where it will kick off from. The Australian dollar is highly sensitive to the commodities markets and global growth of economies, so traders should keep an eye on these factors. The market looks a bit heavy, and the downside may eventually prevail, so traders should be cautious when entering positions.