AUD/USD Weekly Price Forecast – Australian Dollar Threatens a Major Resistance Barrier
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has gone back and forth during the course of the trading week as we continue to see the 0.6850 level as a major barrier. Plus, we also have the 200 week EMA hanging around just above all things being equal. I do think that this is going to be a very difficult area to break above in this last week has seemed to concern confirm that. However, it’s also worth noting that the move higher had been a bit relentless. So, it is a real possibility. If we can break above the 0.69 level, then I think you do see the Australian dollar go much higher.
If we pull back, then the 0.6650 level, of course, is a significant amount of support just waiting to happen. And then after that, the 0.6450 level comes into the picture as well. The Australian dollar is highly influenced by a bevy of external factors, including China, commodities, interest rate differential and interest rate policy. Furthermore, you have to worry about global growth and whether or not that is going to slow down.
Right now, it looks like the RBA is very unlikely to cut rates in the short term, while the Federal Reserve is almost certainly going to in September, and that’s part of what they are trying to price into the market. The question now is, what’s next? This barrier, I think, is something worth paying close attention to.
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This article was originally posted on FX Empire