(MENAFN- Daily Forex)

• The Australian dollar pushed higher against the US dollar, but entrenched range boundaries and heavy resistance overhead keep the broader trend uncertain.
• Despite temporary dollar weakness, upcoming U.S. policy decisions may reintroduce volatility and limit sustained upside.

The Australian dollar broke higher against the US dollar during trading on Wednesday as we are finally starting to see a little bit of momentum. That being said, one of the biggest problems you have in this market is that we are still very much in a range, and I think it's probably going to be difficult to truly break out to the upside. After all, the 0.67 level has been a massive barrier, and over the longer term, I would anticipate that we still struggle to get above there.

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In fact, a lot of resistance starts right about at the 0.66 level, where we are right now. And with this, I think you have to assume that it's only a matter of time before we see some type of exhaustion come into the market. If it does not, then it obviously would be a complete change of attitude for the Aussie overall. If that were to be the case, then we have a situation where the Dollar is probably in serious trouble.

EURUSD Chart by TradingViewRange-Bound Resistance

The US dollar is on its back foot during the trading session on Wednesday. So, of course, it makes sense that maybe the Australian dollar is taking advantage of a weak US dollar, but this is not the norm over the last several months. With all of that being said, I suspect that we have a situation where, if you're patient enough, you could probably start selling this pair again. Keep in mind that there is an interest rate decision coming out of the United States next Wednesday. So, between now and then, things might be a little bit volatile.

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