- The Aussie dollar fell during the trading session on Tuesday as we just continue to chop around and do as much damage as possible to trading accounts around the world.
- That being said, this is a pair that's worth watching because if we finally get momentum in it, then it's possible that it might give us more of a heads up on the U S dollar.
In fact, in a sense, this has nothing to do with the Australian dollar from what I can tell. As things stand right now, it looks like the 0.6650 level continues to be a major magnet for price. Above, we have the 0.6725 level as resistance, and underneath we have the 0.66 level as support, which is also backed up by the 50-day EMA and the 200-day EMA indicators.
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In other words, there is a lot of noise here. Unless you're a short-term trader, you probably are going to struggle to have any real trade set up here. But if you are short-term inclined and have a good range-bound trading system, AUD/USD might be the pair for you. Unless you have that type of system though, it just then becomes an indicator. You'll see what happens with the US dollar and then perhaps either trade it here or trade the US dollar against other things accordingly. The Australian dollar of course is heavily influenced by commodities and Asia. So that all comes into the picture as well with commodities just being all over the place. And with the basically panicked trading that we see in so many markets at the moment.
I think you consider this a market that is likely to end up being somewhat sideways trying to sort out what to do next. Because of this, I expect to see a lot of noisy and nonsensical behavior in this pair, but if we do finally make a decision, it could give us a big “heads up” as to what’s going to happen with the US dollar overall.
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