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If we break down below there, some traders will look at this as some type of head and shoulders pattern and it could lead for a drop down to 120. If that ends up being the case, I suspect we have some type of financial crisis. So, watch that very closely.
AUD/USD Technical Analysis
The Australian dollar has broken higher against the US dollar, and it is now peaking above the 0.64 level, an area that has been like a brick wall over the last several months. We are just above the 200 day EMA as I record this, so we’ll have to see if we can stay above here because if we can, that’s not a good look for the dollar. Now, having said that, could the Australian dollar rally pretty significantly?
Well, the answer, I guess, would be yes, because the next massive resistance level would be somewhere around 0.68, where it had spent a couple of years. So, despite the fact that this has been such a brutal move to the upside, the reality is that through the prism of a longer-term chart, we would just be heading to an area of somewhat normalcy as far as trading is concerned.
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