Yahoo Finance AUD/USD Forecast – Aussie Continues to See Barrier Above
Australian Dollar vs US Dollar Technical Analysis
It looks like the Australian dollar is testing a major resistance barrier in the form of the 0.6650 level, an area that I think continues to be, an area that you have to pay close attention to. It has offered pretty significant resistance multiple times in the past, and therefore I’m definitely paying attention to it. If you see the market break through the 0.6650 level, then it very well could kick off a move towards the 0.69 level.
Underneath we have the 200-day EMA near 0.6575 and then the 50-day EMA. After that you’ve got the 0.6450 level. That is probably more likely the case than not, although I will say that the Australian dollar has been a significant source of strength against the greenback, even when other things could not perform.
So, it’ll be interesting to see how this plays out. Part of this could be due to commodity markets strengthening as of late, which of course has a major influence on the Australian economy. Regardless, this is a situation where I think you have to be cautious. I wouldn’t get overly huge in my position size unless we break out.
Because I think the choppiness is more or less a feature and not a bug when it comes to the Aussie dollar. So, position sizing will be crucial depending on which side you trade. Signs of exhaustion, I don’t have any interest in trying to get too big, but I would short. Mainly because if that trade fails, then you know that we’ve had a serious breakout.
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This article was originally posted on FX Empire
