The Australian dollar saw a significant rally this week, reaching the middle of its previous consolidation area. Despite this strong performance, there are challenges ahead that may hinder further gains. Geopolitical risks and the strength of the US dollar continue to impact the market, making it a noisy environment for traders.
The ANZ has shown some strength, but breaking above the 0.6650 level will be a tough obstacle. If this level is breached, it could lead to a potential move towards the 200-week EMA at around 0.69. On the downside, the 0.6450 level provides strong support, with a break below opening up the possibility of the Australian dollar dropping to 0.63.
Overall, the Australian dollar vs US dollar pair is facing a challenging environment, with key levels to watch for both potential upside and downside movements.