The Australian dollar has shown continued bullish momentum as it breaks out of a symmetrical triangle pattern. The currency is now approaching the 0.68 level and the 200 week EMA, which could pose some resistance. However, a break above the 200 week EMA could lead to a significant rally for the Australian dollar.
Short-term pullbacks are seen as buying opportunities, with the 0.6650 level offering support. Australia’s economy is heavily reliant on commodities, so monitoring commodity prices can provide insight into the direction of the Aussie dollar.
If commodities prices rise, it could be bullish for the Australian dollar as investors move funds into the country. Buying pullbacks is favored as long as the currency remains above the 0.6650 level. A potential target for the Australian dollar is the 0.70 level, but breaking above it may present challenges.
Keep an eye on economic events with the economic calendar for further insights. This analysis was originally published on FX Empire.