Australian Dollar vs US Dollar Technical Analysis
Looking at the Australian dollar, you can see we initially pulled back to test the 50-day EMA, only to turn around and show signs of strength again. Quite frankly, this is a market that I think is going to see a lot of choppiness and back and forth. And with that, I just don’t really see enough exit velocity at this point to get overly excited.
I think we are stuck in yet another range in this pair as traders try to sort out whether or not there is going to be global growth, if the Federal Reserve is going to change its monetary policy, how commodities are going to do, et cetera, et cetera. At this point though, I think you’ve got a situation where market participants are kicking this thing back and forth on probably hourly or even 15 minute charts. If we do break out from the 100 point range that we have been stuck in for some time now, that could open up another 100 points, but right now I just don’t see it.
It wouldn’t surprise me at all by the end of the day if we sold off a bit and just ended up closer to the 0.6650 level, which seems to be a bit of a magnet for price at this point in time. And it’s almost like we just can’t escape the gravitational pull of it. In other words, the analysis is simply the same as it has been for what seems like a lifetime. This is a market that will be one worth watching, but I wouldn’t put a ton of money into it.
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This article was originally posted on FX Empire
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