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Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially tried to break out during the course of the week but struggled a bit to break above the 0.65 level. After all, the market is likely to continue to see a lot of hesitation due to the fact that there are a lot of concerns around the world when it comes to growth. The 0.65 level has been an important level for several weeks now, and the fact that we cannot break above there is something that you should be paying attention to. However, the 0.64 level has offered significant support, so if we were to break down below there, then it’s likely that the market could go down to the 0.6250 level.
Remember that the Aussie is highly sensitive to the commodities markets, and of course the overall growth situation around the world. With that being the case, I think you’ve got a situation where we have to pay close attention to whether or not the Chinese numbers pickup, and of course whether or not inflation is cooling off. As things stand right now, it looks like the sellers continue to come in and punish the market any time it tries to rally. If we were to break above the weekly highlight, then we could go looking to the 0.66 level after that, which is an area that previously has been previous support, and it should end up being significant resistance at this point in time. Any sign of weakness in that area probably gets shorted right along the way. Ultimately, I think this is a situation where we continue to look for “cheap US dollars” and short this market at the first signs of hesitation.
For a look at all of today’s economic events, check out our economic calendar.
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