Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has gone back and forth during the last couple of days and as we currently stand, it looks like the 0.6550 level remains a bit of a magnet for price. Quite frankly, the market is taking a break after a severe beating over the last couple of trading sessions, going back really about two and a half weeks where we plunged from the 0.6790 region. At this point, we have to question whether or not the market is able to continue this type of downward pressure, or will we get a relief rally?
As things stand right now, it looks like we’re just content to go sideways. We could be forming a little bit of a basing pattern, but we would need to see the 0.6575 level taken to the upside to even start to think about that. Furthermore, we have a Federal Reserve meeting on Wednesday, which will probably be the catalyst, regardless of which direction we go.
Once we get a read on the Federal Reserve monetary policy, that will affect the dollar, and of course the Australian dollar will react in kind against that greenback. So, we’ll just have to wait and see. I suspect we probably have another 24 hours or so of this sideways action. After that, I would hope that things become much clearer. This is a market that also has a lot of input from risk appetite, so make sure you understand that as well.
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This article was originally posted on FX Empire
