AUD/USD Weekly Price Forecast – Aussie Dollar Continues to See Confusion

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has plunged during the week, but it has also turned around to show signs of life. The 0.6650 level underneath has been a significant support level, just as the 0.6850 level has been significant resistance. Speaking of the 0.6850 level, the 200-week EMA is sitting right there as well, and that of course offers a bit of technical resistance. In general, I think this is a scenario where we have to look at this through the prism of a market that is going to continue to see the Australian dollar bounce around due to the idea of global risk appetite, and commodity demand also.

If we break out of this range that we are in right now between those two levels, then I think we could really start to make a bigger move. But right now, there are so many questions about where we are going from a risk appetite standpoint that I think it’s difficult for the Australian dollar to get traction in either direction, quite frankly.

Yes, we know that the Federal Reserve is going to be cutting rates here in the next two weeks, but really, we don’t know how much they’re going to be cutting after that. And of course, we have to ask the question, are they cutting range because of something bad? If that’s the case, the demand for commodities and therefore Australia will end up shrinking. So, a lot of questions here in a very range-bound market.

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