AUD/USD Weekly Price Forecast – Aussie Continues to See Range

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Australian Dollar vs US Dollar Weekly Technical Analysis

The Aussie dollar has gone back and forth during the course of the trading week as we continue to threaten the 0.6650 level. That’s an area that has been significant resistance multiple times and therefore I think it continues to be the case.

However, if we can break above the 0.6650 level, especially if it were to be on a weekly close, then I think the market probably goes looking toward the 200-week EMA, which is closer to the 0.69 level. On the other side of the equation, if we were to break down below the bottom of the candlestick for this past week, then it opens up the possibility of a move down to the 0.6450 level, an area that has been massively supported multiple times.

All things being equal, this is a market that I think is still stuck in consolidation, so therefore, I don’t think you can get overly excited as a longer term trader, at least not until we break out of this range. If and when we do, then you can make a much bigger trade. You need the Australian dollar to see a lot of risk on behavior out there to actually jump to the upside, so that’s something you need to pay close attention to.

The US dollar of course is considered to be a safety currency and that is something to keep in mind as well. Furthermore, the Federal Reserve continues to look like it’s going to stay tight for longer which helps the dollar, so I don’t know that we are going anywhere but I’m definitely paying attention to the 0.6650 level above.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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