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Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied rather significantly during the course of the trading week as the 0.64 level continues offer a bit of support. That being said, this is a market that I think continues to see a lot of noisy behavior, and therefore it will be very difficult to hang onto a longer-term trade. However, if we can break out of this little range, there are a couple of targets that I will be paying attention to, as we have been in a 100 point range for a while.
Breaking down below the lows of the week could open up a move down to the 0.6350 level, and then eventually the 0.63 level. On the other hand, if we were to turn around and break above the top of the 0.65 level, then it’s likely that the market goes looking to the 0.66 handle.
In general, the Australian dollar is highly sensitive to the overall risk appetite around the world, and that of course is going to continue to be a moving target. That being said, the market is likely to continue to see a lot of fluctuations, and I do think that it makes quite a bit of sense that we continue to go lower, but we need to break down below the support level that we have been testing over the last month or so to make that move. On a rally, I believe that the 0.66 level is an area that I think would offer a lot of selling pressure. Above there changes a lot, but right now I just don’t see that happening.
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