Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has fallen rather significantly during the course of the week to break down below the 0.6650 level, an area that has been both support and resistance at multiple times. However, when you look at the overall market, it’s easy to see that we’re in basically a two and a half year consolidation range. This is very similar to how the euro is behaving. In this case, we have the 0.6850 level above offering resistance with the 200 week EMA sitting there. Underneath we have the 0.6450 level offering support, followed by the 0.63 level, which I think is a pretty hard floor.
A lot of noise is found in this pair, but quite frankly, if you wait for it to get a little extreme in one direction or the other, over the last couple of years, it has shown its proclivity to jump right back to about where we are now. With that being said, despite the fact that the candlestick is rather negative, I am rather neutral, at least from a longer term standpoint.
If we can drop a bit from here and then see a bit of a bounce, I might be a buyer. But quite frankly, unless you are a longer term rangebound trader, the Aussie dollar probably doesn’t offer a whole lot as we are just showing a lot of choppy behavior time and time again. Because of this, I think you have to look at this market as one that is sideways overall, and therefore you will have to look at short term charts for guidance.
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This article was originally posted on FX Empire
