Yahoo Finance AUD/USD Weekly Price Forecast – Aussie Powers Higher For The Week
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied rather significantly during the course of the week, reaching the middle of the previous consolidation area. So, in other words, we are essentially where we started the beginning of the year. This has been a very strong week, but there are a lot of reasons to think that it’s going to be difficult to continue going higher, at least going higher with any type of ease.
Quite frankly, this is a market that continues to be very noisy due to the geopolitical risks and of course, the strength of the US dollar. The ANZ has been a little bit of an outlier, but ultimately the 0.6650 level above will be a massive barrier that might be a bit too difficult to overcome. If we were to break that level, it could open up a move to the 200 week EMA, which is sitting at roughly 0.69. Underneath, the 0.6450 level offers a lot of support, and traders will be paying close attention to it, but I believe anything below there opens up the possibility of the Australian dollar trading down to 0.63.
Either way, I do think you’re going to see a lot of volatility and choppiness in. Quite frankly, with all of the uncertainty, it’s difficult to get overly bullish on the Australian dollar, not necessarily because of Australia, but just because of the safety aspect of the US dollar. You can also make an argument for some type of triangle trying to form on the longer term charts.
I’m not really convinced about the efficacy of these massive triangles, though. Either way, it might be something worth watching as a potential squeeze play eventually.
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This article was originally posted on FX Empire
