AUD/USD Weekly Price Forecast – Aussie Dollar Falls at Crucial Resistance Area

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar initially rallied a bit during the course of the trading week, but then fell rather significantly as we continue to see a lot of volatility. At this point we are hanging around the 200 week EMA, so that is something worth paying close attention to. The 0.69 level is an area that’s been a bit of a problem for the market in the past, as we are close to the top of the overall range that we’ve been in for a couple of years.

That being said, this is a market that I think continues to see pressures in both directions, which makes a certain amount of sense, considering that the overall attitude of the market is going to be one of risk on versus risk off. Recently, we’ve seen a lot of questions asked about the overall monetary policy of the United States and now that the jobs number came out hotter than anticipated on Friday, so one would have to think that is still murky.

That being said, we have a clear area right around the 0.6950 level that if we break above, I think the Australian dollar will truly take off. And in that environment, we very well could see the US dollar shrink against most things in more of a risk on bid. On the other hand, if we break down below the 0.68 level significantly, then I think the next major support level can be found near 0.6650, which also features the 50-week EMA.

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