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AUD/USD Weekly Price Forecast – Australian dollar reaches towards top of range

Christopher Lewis

The Australian dollar has rallied during the week, reaching towards the 0.66 level, an area that has continued to cause some issues. The longer-term trader is going to continue to look for opportunities to fade this market, but right now it seems like we are simply bouncing around between the 0.66 handle on the top and the 0.63 level on the bottom. You can see that there are long wicks on a couple of weekly candlesticks down near the 0.63 level, and of course we had seen the 0.66 level open up the trapdoor of massive selling based upon that nasty candlestick from the level that led to selling.

AUD/USD Video 25.05.20

Looking at this chart, the 50 week EMA is reaching lower, and should offer a bit of resistance as it is just above the 0.66 handle. This is a market that continues to be very noisy in general, so having said this longer-term traders are probably going to have a little bit of trouble. However, if you are patient enough to look at the 0.66 level as another shorting opportunity or break down below those candlesticks near the 0.63 level to start selling, you could make some money. If we get a weekly close above the 0.67 level, it is highly likely that we could see a bigger move, probably another 300 point move by the time it is all said and done. That being said, it looks like we are getting ready to continue the overall malaise in this pair, so I like the idea of shorting as the Aussie is so highly levered to global trade.

This article was originally posted on FX Empire