The Australian dollar has fallen rather hard during the course of the training week, but it does look like buyers a step back in at the lows of last week.
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar initially tried to rally but ran into a lot of trouble near the 200-Week EMA, only to pull back and slam into the bottom of the candlestick range from last week. At this point, it seems as if buyers are trying to stand in the market and step up support, but whether or not that last is a completely different question. If we break down below the bottom of the candlestick for this past week, then I think it’s likely that this pair goes looking toward the 50-Week EMA underneath, which is right around the 0.69 level.
Know where the Market is headed? Take advantage now with
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
On the other hand, if we break above the top of the range then it opens up the possibility of the Australian dollar going all the way up to the 0.7250 level given enough time. That is an area that I think a lot of people will be paying close attention to, and if we could break above that level, then it will open up the possibility of a move to the 0.75 handle. On the other hand, if we break down below that 0.69 level, that could send a lot of selling pressure into this market, perhaps opening up a huge move down to the 0.67 handle, and then the 0.65 level.
Keep in mind that the Australian dollar is highly influenced by external factors such as China and of course global growth demand in general as we have seen so much in the way of confusion. Because of this, I think you will continue to see a lot of problems when it comes to commodities, which of course is the main export of Australia.