AUD/USD Forecast – Aussie Dollar Falls on Friday

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar did pull back just a bit during the course of the trading session on Friday as the non-farm payroll numbers came out much hotter than anticipated. This of course drove money into the US dollar as we continue to see a lot of questions asked of this overstretched condition.

At this point, I do think that there are value hunters underneath willing to take advantage of this because we should go risk on given enough time, but the interest rate situation in the Federal Reserve, of course, could be a little bit different, as interest rates in America don’t get cut as much as anticipated, then it’s likely that we could see a lot of strength in the greenback that people aren’t counting on at this point in time.

That being said though, the Australian dollar is likely to continue to benefit from risk on behavior. But at this point, it’s also worth noting that we have just pulled back from the 200 week EMA and the 0.6850 level, an area that’s been important. At this point, now I’m waiting to see if we get some type of bounce below at the 50 day EMA or perhaps the 0.6350 level to start going long again, as the 0.6650 level also features the 200 day EMA. We just got a little ahead of ourselves. Some good economic numbers coming out of the US obviously would have a somewhat positive effect on the greenback itself.

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