The Australian dollar fell during the open on Friday as we continue to see a lot of hesitation.
All things being equal, this is a market that I think will continue to be noisy as we are sitting just above the 50-day EMA. The 50-day EMA, of course, is an indicator that I think a lot of people would be watching.
Breaking down below the 0.7080 level opens up the possibility of a drop to the 0.6950 level, and I think in that environment, you probably have a situation where the market would probably be seeing interest rates skyrocket in America, and you'd probably see the US dollar strengthening against almost everything.
Top Regulated Brokers
Aussie is an anomaly, just as the Pound is.
With that being the case, I think the same situation comes to mind when looking at many other currency pairs, because quite frankly, the US dollar is strong, but where it is at least somewhat mild, it's against the Australian dollar and the British pound. If those 2 currencies start to give up any type of efficacy against the greenback, then the dollar is going to run to make a move across the forex world.
On the other hand, though, if we turn around and break above the 0.72 level, we could see the Aussie dollar go back towards the highs just below the 0.73 level, and it's possible that you might see the US dollar fall across the board.
I don't short the AUD/USD pair. I look for buying opportunities on dips, but I look for US dollar weakness overall to do so. We didn't really see that today on Friday, so it wasn't an interesting dip for me.
Ready to trade our AUD/USD Forex forecast? Here’s a list of some of the best Australian forex brokers to check out.