Australian Dollar vs US Dollar Technical Analysis
The Australian dollar continues to bounce back and forth in lackluster, meaningless trading between 0.67 above and 0.66 below. If you are a short-term trader who can pay attention to the charts, this is an excellent scalping market, because honestly, we don’t have to go anywhere, and I don’t know if that will change anytime soon.
We are in the middle of summer, which is not usually a very volatile time of year, but it is not usually a time of year where you see a lot of big moves. This gives you about a 100 point range to trade, and if you are short term inclined, this is your market. For those of us trying to get a little more out of a move than about 20 pips:
This is a market that is really not worth getting involved with. There are other markets that move much faster, much faster than this pair. So basically I think you’re just having a lot of back and forth nonsense at this point. Maybe it’s because the interest rate difference wasn’t spread out that crazy. Perhaps it’s just that people view commodities as a potential hedge against inflation and that’s why the Australian dollar is getting a little boost.
Or maybe it’s just because no one knows what to do. I think if you look at the underlying fundamentals of a lot of markets, I think people not knowing what to do is the real answer right now. You can see that we have been behaving like this for a while, even when we do trend, we chop. This has effectively become the euro against the dollar. That’s why I’m not looking for big moves.
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This article was originally posted on FX Empire
