Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has rallied significantly during the course of the trading week to go looking to the 0.6650 level above, an area that previously has been resistance. It’s an area that has been broken above a couple of times in the last few years. So, I do think that if we get a daily close above that level, we could go looking to the 0.6850 level where the 200-week EMA currently resides. This of course will almost always attract a certain amount of attention.

Short-term pullbacks, I think, continue to offer support, especially near the 0.6450 level. Underneath there, we have the 0.63 level, which I think is the absolute bottom. Over the last two years, we spent most of the time in this box between 0.63 and 0.6850. We’re basically in the middle of this. So, I think we’re going to continue to see a lot of sideways nonsense, especially as traders are trying to determine whether or not the Federal Reserve is going to come and bail everybody out.

After that, then they have to ask questions of how’s Asia doing? Because the Australian dollar and the Australian economy are highly sensitive to Asia and of course risk appetite. So, it all comes together quite nicely for a potential scenario where traders will look at this through the prism of whether or not it’s risk on or risk off and I think we’re probably going to spend most of our time over the next several months just pinging around back and forth.

For a look at all of today’s economic events, check out our economic calendar.