Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied a little bit during the early hours on Friday as it looks like we are trying to reach a common resistance barrier from before. The 0.6650 level is an area that’s been very important more than once. So, it’s not a huge surprise to see that we are struggling there.

Furthermore, you also have to keep in mind that this is a pair that has been very noisy, but again, very range bound over the course of the last year to year and a half. In fact, we’ve essentially been in a 400 point range. This has been broken for short periods of time, but overall has held quite obviously over the last few several swings in price.

And right now, we’re closer to the middle. That being said, I still think this is a relatively neutral candlestick despite the fact that it is positive. And that is because we’re already starting to show a bit of resistance from the 0.6650 level. If we can break above there, then it’s possible that we could go looking to the 0.6750 level, but that obviously is going to take a major risk on type of move. I think more likely than not we continue to hang around the 50 day EMA as well as the 200 day EMA indicators. Underneath I see a lot of support at the 0.6550 level followed by the 0.6450 level.

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