AUD/USD Technical Analysis
The Australian dollar has rallied again during the day on Monday as the 200-day EMA held on Thursday and now Friday looks to be very much the same. Above, we have the 50-day EMA that could come into the picture for some type of resistance, so pay close attention to that.
I do recognize that the Aussie dollar had sold off quite drastically, much like the Euro, and I think some of this might just be simple profit taking heading into the weekend in both the Australian dollar and the Euro for that matter. All things being equal though, we need to see this pair break above the 0.6760 level to really start to pick up momentum.
So right now, it’s intriguing, it’s worth watching, but it isn’t necessarily time to buy at this point. I think this is just simple profit taking, maybe a little bit of a dead cat bounce. I would be more likely to short this pair on signs of exhaustion, especially near the 50 day EMA, than I would be to buy it at least at this moment.
