AUD/USD Weekly Price Forecast – Aussie Continues to Chop For The Week

Australian Dollar vs US Dollar Weekly Technical Analysis

The Aussie dollar has rallied a bit during the course of the week, but we stay very much in the same squeezed area. Because of this, I think the market is just simply killing time and trying to fight against this downtrend line that has been so important. Breaking above the 0.6760 level could open up more buying, perhaps to the 200-week EMA, which is closer to 0.69, but we just don’t seem to be able to hang on to the momentum. A breakdown at this point could send the market back down towards the 0.66 level. This is a move that so far has been resisted. Whether or not it happens will more likely than not come down to the idea of US dollar movement, not necessarily the Aussie dollar.

Breaking that level could open up to 0.6450. Quite frankly, this is a market that I think is just killing time through the summer as we try to determine whether or not the Federal Reserve will eventually loosen monetary policy or if commodities will take off, global growth helps out the Australian dollar, we just don’t know.

Keep in mind also that the Aussie dollar is highly sensitive and tethered to Asian economies. So that of course has a certain amount of influence as well. But as things stand right now, this looks like a market that I’m just simply waiting for a trade to break out. It’s just not overly aggressive in one direction or the other. And I think that’s probably going to be the main takeaway here at this point.

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