Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has fallen during the week, perhaps in sympathy to the Reserve Bank of New Zealand cutting rates, and therefore subsequently sending the New Zealand dollar lower. After all, these two currencies do tend to move in the same overall direction, so it’ll be interesting to see how that plays out. That being said, we have bounced a bit and the candlestick, although negative, doesn’t look horrific, and it does look like, at least for the time being, traders are doing everything they can to jump in and support this market.
If the Australian dollar were to break above the 0.6850 level, then I think we have the possibility of a move above the 0.6950 level, where we pulled back from over the last several weeks. In that environment, once we get above that level, then I think you’ve got a situation where the Australian dollar continues to go much higher. On the other hand, if we break down below the 0.6650 level, that could send the Australian dollar falling towards the 0.6450 level.
