Commodity Bulls Hope Australian Dollar Can Rally Above Resistance

australian dollar audusd trading breakout resistance analysis june chart

Early 2020 marked a 19 year low for the Australian Dollar (Aussie, AU$, etc…), but since that time the currency has been very strong.

And, being that the Aussie Dollar and Commodities tend to trend together, this strength has carried over to the commodities market as well. Will strength beget more strength… and fuel another surge in commodities?

Watch that resistance!

As you can see in today’s long-term “monthly” chart of the Australian Dollar, price has traded within a falling channel for the past decade. BUT, as mentioned earlier, price has rallied sharply over the past year and carried the Australian Dollar to an important juncture marked by its 2017 highs and the upper end of its falling channel.

What happens here could be very important for commodities. If the AU$ can kick its way through dual resistance, look for commodities to experience another strong rally! Stay tuned!

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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