Australian Dollar Futures Hit Two-Month Low
The Australian dollar (A6Z26) is facing a selling opportunity due to its price weakness, according to recent analysis of December futures. The daily bar chart for December Aussie dollar futures shows that prices have been trending down and have reached a two-month low.
The moving average convergence divergence (MACD) indicator is also in a bearish posture, with the blue MACD line below the red trigger line and both lines trending down.
Fundamentally, the U.S. dollar ($DXY) has been outpacing its currency counterparts due to a more hawkish Federal Reserve amid inflation worries. The global energy crunch has had a greater impact on the Australian economy than the U.S. economy.
A move below chart support at .6923 would become a selling opportunity, with the downside price objective being .6650 or lower. Technical resistance is located at .7025, and traders may want to place a protective buy stop just above this level.