- On Monday, the Australian Dollar saw a mildly positive day, though it’s clear we’re still facing challenges at the same price level.
- The 0.6550 mark seems to be a point of attraction.
- I believe there’s potential to move higher, but it appears limited, especially with the 0.66 level being quite tough to break through.
https://www.youtube.com/watch?v=unsms_kzsdg
There’s been quite a bit of lackluster price action lately. Ultimately, it feels like we’re trying to establish some kind of horizontal range. It’s also important to highlight that the Australian dollar hasn’t fared as well as many other currencies against the US dollar.
If US dollars find buyers overall…
So, if the US dollar shows any signs of strength on Tuesday, I expect the Australian dollar to be quite vulnerable. We’ve seen a lot of selling pressure in recent months, and compared to other currencies, like the British pound, it hasn’t really gained much.
In light of any hint of strength in the US dollar, this pair seems likely to decline significantly. If it does drop, we could see both the 50-day and 200-day EMA indicators, which are currently flat, come into play. Although a move back toward the 0.64 level seems possible, how quickly that might happen is uncertain. It’s a bit of a sideways struggle, despite some upward movement over the last few months. Right now, the situation is at a point that feels quite logical, so we’ll see if any signs of weakness appear.
Ready to trade? Check out the largest forex broker in Australia. It’s worth looking into.
With over 20 years in the financial markets, Christopher Lewis works in foreign exchange. He has been a consistent contributor to Daily Forex since it launched, writing for various online platforms including FX Empire and Investing.com. Chris typically employs technical analysis to guide his trades and prefers a long-term approach, often holding positions for days or weeks.
