Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit in the early hours on Thursday, as we continue to see a lot of sideways action in general. The 0.6550 level seems to be an area of significant resistance, and therefore if we were to break cleanly above there, then we could go looking to the 200-day EMA and the 50-day EMA above that. At this point, it looks like the Australian dollar will continue to be very sideways and noisy, which does make quite a bit of sense considering that the Australian dollar is highly levered to the commodities markets and of course global risk.

If the global economy is being threatened, then you don’t really know what to do with an asset like the Australian dollar. At this point, it looks like the 0.6450 level will continue to offer significant support as it has, I think we’re just stuck to the same sideways chop, and that can be said of a lot of FX pairs at the moment, as we have seen so much noise out there that it’s a bit difficult to get overly aggressive with anything as the world seemingly holds its breath.

Ultimately, this is a situation where you need to be cautious about the overall size of your position, as the risk out there is palpable at this point in time. The market will continue to be one that focuses on the short term more than anything else, and we will have to be cognizant of the latest headlines to navigate this pair.

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This article was originally posted on FX Empire