The Australian dollar has rallied quite nicely during the trading session on Friday, reaching towards the 0.60 level. At that juncture, the market of course has shown a lot of interest, as the sellers have come back in and push the market back towards the .59 level by the time the Americans came back on to the stage. With that being the case, the market is very likely to see a lot of choppiness, but I think the market will more than likely show quite a bit of negativity in general. I still believe that we are getting close towards the bottom of the downtrend, but we may have another five handles to go. From a historical standpoint though, the 0.50 level should be a massive floor in the market.
AUD/USD Video 23.03.20
We are currently testing the area for resistance that was the bottom of the financial crisis, and therefore I think there will be a lot of interest in this pair. Because of this, if we break above the 0.60 level, we could get a little bit of a move to the upside. All things being equal, I think that this is a market that continues to see a lot of noise, especially considering that the Australian dollar is so highly levered to the Chinese economy and therefore global growth. The global growth situation of course is going to continue to be a bit of a question, due to the fact that the coronavirus is going to slow down economies around the world, and therefore slowdown the demand for a lot of commodities, at least in the short term. That being said, I do think that once the coronavirus settles down or at least look like it’s going to, the Australian dollar will begin a long grind to the upside.
This article was originally posted on FX Empire
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