Australian Dollar vs US Dollar Technical Analysis

The Australian dollar is extremely overbought on the daily chart at this point in time and it’s likely that we could see the trading public pay close attention to the FOMC meeting minutes later in the day, as it gives us a bit of a heads up as to what FOMC members have been talking about at Federal Reserve meetings. It’s not so much concerned about whether or not they’ll cut at the next meeting. I think that’s pretty much baked in the price.

The question, of course, is are people getting a little over excited about the idea of Raid Cuts? You know how many they’re going to be in and at what size? I’m starting to hear some people talk about 75 basis points, which is absolutely ridiculous and would be a sign of panic, not strength.

So, at this point in time, I suspect a pullback is probably more likely than not with the 0.6650 level offering support. Above though, we have the 0.6850 level offering potential resistance, and that would be your ceiling in the market from everything I see. The stochastic oscillator is in the overbought condition by a pretty wide margin and is getting ready to cross again. So, I think at this point, it wouldn’t take a whole lot of imagination to assume that a significant number of the buyers would be willing to step in and take a bit of profit as they have seen gains.

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