AUD/USD Forecast – Aussie Dollar Falls in Early Thursday Trading

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen quite significantly during the trading session on Thursday in the early hours and it looks like we are finally getting the pullback that we’ve needed for some time. As we break below the 0.6850 level it’s possible that we could drop down to the 0.68 level. Keep in mind that when you look at the longer term charts, we just tested and peaked just above the massive resistance barrier from the last couple of years, so a lot of this really wouldn’t be much of a surprise.

I am somewhat surprised we didn’t pull back before. If we continue to have troubles out there when it comes to risk appetite, that will continue to weigh upon the Aussie dollar. When we do fall, the 0.68 level, the 50-day EMA, and the 200-day EMA level all could come into the picture offering support. Ultimately, this is a pair that focuses a lot on risk appetite.

So, pay attention to what stock markets are doing because it can give you a bit of a heads up as to how the Australian dollar is probably going to behave. The Chinese recently injected a ton of liquidity into the markets, and we were celebrating that for a few days, but I think that’s actually a bad sign and it’s likely that the Aussie is going to give up some of that correlation as far as gains are concerned. We’ll have to wait and see though, but I do think eventually we’ll bounce. It’s probably best to step away in the short term.

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