Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially rallied during the trading week to test the crucial 0.6650 level, an area that has been massive resistance more than once. However, we have given back those gains, and now it looks like we are essentially stuck in the same consolidation area that we’ve been in for the bulk of the year. The market is currently trading between the .6650 level and the .6450 level, and I don’t know that anything will change anytime soon.
After all, you have a situation where central banks are going to be cutting interest rates, and people start to question whether or not that is a bad sign for the economy. If we do, in fact, continue to see that, it’ll be interesting to see how this plays out. However, right now we don’t have major movement in the market and I don’t know if it will change anytime soon.
Quite frankly, this is a market that has been extraordinarily tight. I think it probably stays tight for the majority of the year. If we were to break out of this 200 point range, that would obviously be a big deal. And at that point, I think you have to look at it through the prism of trying to find some type of momentum.
A 200 point move is most certainly possible in that environment in which we break out. But right now, I think you have to be very cautious and recognize that we have a scenario where this is probably more apt to short-term range bound trading than anything else.
For a look at all of today’s economic events, check out our economic calendar.
