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Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar had initially tried to rally during the course of the week, but gave back gains to show signs of negativity. Ultimately, this is a market that I think continues to see a lot of volatility, and it looks like it’s getting ready to break down below the bottom of the recent candlestick from the previous week, and if it does happen, then the market likely goes down to the 0.62 level. The 0.62 level was a major support level, so breaking down below there would be a big deal.
The markets continue to see a lot of concerns from multiple reasons, so it does make a certain amount of sense that the Aussie will be ran away from. After all, the US dollar is considered to be a “safety currency”, therefore it’s likely that we continue to see a lot of downward pressure. It’s not until we break above the 0.65 level that I would even consider buying the Aussie dollar, and therefore I think this is a “fade the rally” type of market just waiting to happen, and therefore I think you have to look at it through the prism of a shorter-term perspective, but you may eventually get a signal to start buying again on the weekly chart.
We don’t have that yet, so there’s no point in bothering with it at this juncture. All things being equal, we will continue to see a lot of noisy behavior, and therefore you have to keep in mind that shorter-term charts are probably going to be the way going forward in this environment.
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