Yahoo Finance AUD/USD Weekly Price Forecast – Aussie Dollar Continues to Look Noisy
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied a bit during the week, but we have since pulled back to reach the top of the consolidation area that we had been in. It’ll be interesting to see how this plays out, and I think at this point you have to be very cautious.
A move above the top of the weekly candlestick is very bullish, and it opens up the possibility of a move to the 0.69 level. But at the same time, if we turn around, fall from here and break down below the bottom of the candlestick for the week, then it’s likely that we go down to the 0.6450 level.
All things being equal, you have to keep in mind that the Aussie dollar is more or less a currency that people buy into when risk appetite is high. However, it’s also worth noting the commodity markets have done extraordinarily well as of late and that does help the Aussie. So that would be the one thing that’s really pushing it at this point, from what I can see.
That being said, the US dollar is also considered to be a safety currency, and there are plenty of things out there to be worried about right now. And so that comes into the picture as well. When you look at the weekly chart, it doesn’t take much of imagination to see some type of triangle here. And therefore, I think we have to look at the potential of a huge move. given enough time, we just don’t look like we’re ready to break out yet.
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This article was originally posted on FX Empire
