Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has fallen pretty significantly during the course of the trading week, only to turn around and show signs of life. By doing so, it looks like we are trying to form some type of hammer and this of course is a bullish sign. Having said that, when you look at the chart, you can see clearly that the 0.63 level underneath is massive support. And above we have the 0.6850 level offer significant resistance.
So, with all of this, I think this is a situation where we have been basically in the middle of the overall range for the last couple of years. And therefore, I think it’s a fairly neutral pair, despite the fact that we did have such a nice bounce. Pay attention to the US dollar around the world because it could give you a bit of a heads up as than what we are going to do here. That being said, the market is more likely than not going to be the domain of short-term traders, and they will just simply bounce back and forth between four major levels that I have plotted on the weekly chart.
All things being equal, keep in mind that the Australian dollar is highly sensitive to risk appetite and of course, what’s going on in Asia. Asia, of course, has had lackluster economic numbers. So, with this, I think it makes a certain amount of sense that the Aussie remains in a somewhat depressed type of level like we have seen it over the last two years.
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This article was originally posted on FX Empire
