Australian Dollar vs US Dollar Technical Analysis
And it looks like we are heading into major resistance in the form of the 0.6650 level. This is an area that, of course, you are going to have to be very cautious with because it was previously resistance, and it has been very important multiple times.
With that being the case, I think you’ve got a situation where just a little bit of patience probably comes into the picture, because you have to wait to see whether or not we can clear this hurdle, if we can. This could be a very pivotal point in time for the US dollar. If we can’t, then we have just simply tested the top of the range yet again, which, you know, let’s be honest, wouldn’t really be the biggest surprise.
This is a market that we will know more with the weekly close. So, I would be very cautious at this point. But I would also recognize that the Australian dollar is highly sensitive to risk appetite. And of course, the US dollar is considered to be a safety currency. So that has to come into the picture as well.
Ultimately, this is the market that I think ultimately gives you an idea of Asia. This is because the Australians are very, heavily, tied to the Chinese economy. So, we’ll see how that plays out. This is not a market I would trade in. Now I want to see where it closes and if it breaks out of this range, if it cannot, that might tell you everything you need to know.
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This article was originally posted on FX Empire
