Yahoo Finance AUD/USD Forecast – Aussie Dollar Continues to Fight
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied significantly during the early hours on Monday as we continue to see a recovery. I’ll be the first to admit that I haven’t exactly been really solid with the Australian dollar as of late, because I continue to see a lot of resistance above.
However, it does look like we could very well get close to that crucial 0.6650 level, which had previously been a major resistance. I think signs of significant support are sellable events, but it’s worth noting that the last three candlesticks before the Monday session all had long wicks to the upside, suggesting that there were a lot of sellers jumping in.
So, in other words, it’s been extraordinarily resilient. The 0.6650 level above is an area that previously had been a major resistance as far as a trading range is concerned. So, it is worth paying close attention to the idea of selling exhaustion. But if we do get above the 0.6650 level, then it’s possible that the market could go looking to the 0.6825 level.
Keep in mind that the Australian dollar is highly levered to global trade and of course commodities. While the US dollar is going to be paying a lot of attention to the Federal Reserve, its interest rate policy and of course, geopolitical concerns, as the greenback is considered to be a safety currency, despite the fact that we have been so bullish, we are still basically in the same range, but it’s probably worth noting that the Australian dollar just won’t give it up. 0.6650 will determine where we go next if we get anywhere near there.
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This article was originally posted on FX Empire
