“Weekly Technical Analysis of the Australian Dollar versus the US Dollar”

The Australian dollar initially attempted a rally throughout the week but faced resistance at the upper end of its range, leading to a significant decline. This was largely influenced by higher-than-expected inflation figures from the United States, diminishing prospects of future rate cuts by the Federal Reserve.

As a result, non-U.S. dollar assets suffered, reflecting a predictable outcome. There’s a likelihood that the 0.6450 support level will need to be tested eventually. A break below this level could trigger a substantial sell-off, potentially extending down to the 0.63 mark.

Alternatively, if a reversal and rally occur from current levels, it would likely result in continued consolidation within the established 200-point range. It’s noteworthy that the euro has experienced considerable weakness against the dollar, often indicative of broader trends in currency markets.

Given these dynamics, close attention should be paid to the 0.6450 level. Additionally, factors such as geopolitical tensions, global economic slowdown, and inflationary pressures are favoring the greenback, exerting downward pressure on the Australian dollar and, increasingly, on other currencies as well.