Australian Forex Over the Past Month

I haven’t been in Australia for the past month, and it’s time to review the forex charts to check out what’s been happening to my beloved AUD/USD currency pair over the past month. Yes, the holiday was GREAT. And Yes, I did keep up to speed of what the Australian dollar has been doing over the past month. How? By checking out local papers and Bloomberg! I would play a guessing game - I would remember the price action - if I noticed the dollar stayed at about the same price for two consecutive days I would note that price as a certain support/resistance area (I didn’t have charts and I only checked the Aussie dollar once a day at most). The guessing game would involve me guessing the next direction, not knowing any fundamental economic news announcements and only knowing the price. Let’s just say I was profitable.

It looks like the Australian dollar had a very interesting month. A lot of money could have been made because there was a lot of forex price action in this pair. Interesting to see a rapid fall on the 24th of January. Looking at my financial diary, that day was choc-a-bloc full of economic announcements: Consumer Price Index (CPI) and other RBA figures. I guess the economic numbers from the CPI didn’t show any need to increase Australian interest rates. The dollar kept falling for the next week until it hit around 77 cents. You had a week to short the dollar! Then the dollar had a gradual rise back up to 0.7817 which it hit on the 9th February. Then the dollar retreats back close to 77 cents. From 13th to 16th, the dollar was steaming ahead, and now the dollar has setup a new trading range, a plateau forming between 0.7850 and 0.7884. Any more hawkish talk about interest rates and the dollar may break this trading range soon.

The forex chart of the Aussie/US currency pair above is from my personal review of the charts. I was trying to strategise on the next move: The text in the graphic reads: AUD/USD Spot: 1 Month/1 Hour “Price action for AUD/USD over the past month with major support/resistance formations noted. MACD indicator notes a BUY signal, while major resistance level at around 0.7884 is present. Any break above that point will extend the dollar’s upside or it may choose to remain in the current trading range.” I roughly noted as the major support/resistance prices as: 0.7884, 0.7850, 0.7817, 0.7786 and 0.7706. What did I do? Went long on the Aussie dollar.

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