- The Australian dollar had a slightly positive day during Monday, but it is worth noting that we are still struggling right around the same level yet again.
- The 0.6550 level is an area that has been like a magnet for price.
- And while I think we could go higher, I think the upside somewhat limited, as the 0.66 level has been very difficult to overcome.
We have seen a lot of just weak price action in this market. I think ultimately, we are trying to find some type of sideways range to get into and we may be fairly close to the top of it. Keep in mind that the Australian dollar has underperformed most other currencies against the US dollar.
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So, if Greenback does pick up a little bit of strength during the trading session on Tuesday, I fully anticipate that the Aussie will be a place you see give back some gains. had seen a lot of us dollars selling over the last several months, and it's worth noting that the Australian dollar just was grinding higher. It really wasn't moving higher like the British pound, and the euro had been, for example.
So, at the first signs of us dollar strength, you would expect this pair to truly fall apart. If we do fall from here, you've got the 50 day EMA and the 200 day EMA indicators below, but they are both flat. I think you could see this market try to go all the way back to the 0.64 level, but I don't know how quickly it happens. This is a bit of a sideways slog has been despite the fact that we did rise over the course of several months and therefore I'm looking at this through the prism of can I short this pair? As things stand right now, we are in an area that would make a lot of sense, so we'll see if we get any signs of weakness.
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