The Australian dollar has found itself going back and forth during the trading session on Friday, as we do not know what to do with ourselves quite yet. The market has been bouncing around between the 0.68 level on the bottom and the 0.70 level on the top. Overall, the market is trying to figure out what the next big move is, especially considering that the market has been oversold, and now you can make the argument for it being overbought.
AUD/USD Video 29.06.20
The Australian dollar is highly influenced by China and global trade. With that, you have to keep in mind that the global trade situation looks a bit sketchy at best, and we need to pay attention to where things are moving on those fronts in order to get a handle on what is going to happen with the Australian dollar. The Australian dollar is pressing against the 0.70 level, which is an area that has been crucial more than once and of course is a large, round, psychologically significant figure.
Ultimately, the market is looking at major resistance between the 0.70 level and the 0.71 level above there. To the downside, the 0.68 level has been relatively supportive, so if we were to break down below there it is likely that the market is going to go looking towards the 0.6675 handle. A breakdown below there could send this market even lower, reaching down towards the 0.65 handle, which is right in the midst of a lot of trading previously.
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This article was originally posted on FX Empire
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