AUD/USD Weekly Price Forecast – Australian Dollar Drifts Toward The Support Level

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Australian Dollar vs US Dollar Weekly Technical Analysis

The Aussie dollar has fallen a bit during the course of the week, but it seems to be finding plenty of support near the 0.65 level. With that being the case, I think it does make a certain amount of sense that the market finds a little bit of support in this range that we have been in, and ultimately, I think you have a situation where market participants continue to look at this as a market that’s trying to find its bottom.

As we have seen, the market bounced multiple times from just below the 0.63 level. In general, it does make a certain amount of sense that this market might be sideways as there are a lot of questions to be asked about the global economy. Remember, the Australian dollar is highly sensitive to the global growth situation and China, so you will have to keep an eye on both of those situations.

Furthermore, there’s a lot of questions asked as to whether or not the Federal Reserve will cut anytime soon. A lot of people believe, and the dot plot itself said that there could be three quarter percentage point cuts this year, but at the end of the day, it looks like it could be pushed back, and if that’s the case, that continues to make the dollar somewhat attractive. At this point though, looking at the chart, there’s nothing compelling for me to get involved either way from a longer term standpoint. That being said, if you’re a short-term trader you may find it interesting to trade this market right now.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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