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Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has been very noisy as of late and the past week was no different. All things being equal, it looks like we are bouncing around between the 0.66 level on the bottom and the 0.69 level on the top. Because of this, shorter-term traders have been attracted to this market as it is so range bound, but it is going to be difficult to trade from a weekly chart. If we break down below the 0.66 level, then it opens up the possibility of a move down to the 0.65 handle. On the other hand, if we turn around and break out above the 0.69 level, then it opens up a move to the 200-Week EMA, which is closer to the 0.7050 level.
In general, this is a market that I think continues to see a lot of noise and therefore it’s going to be difficult to get aggressive. Keep in mind that the Aussie dollar is highly leveraged to the Asian economy and global growth in general, so it does make a certain amount of sense that we would see a lot of back and forth. In general, this is a market that I think you have to look at through the prism of confusion, and therefore it makes sense that we would continue to see this type of behavior. However, if we break out of this range, that opens up a bigger trade that people will be paying close attention to. Until then, I think you have to be very cautious and recognize that the market is one that is difficult to hang onto.
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