The Australian dollar has initially tried to rally during the trading session on Wednesday, but as you can see has rolled right back over to show signs of exhaustion. With that being the case, the market is likely to stay in the same range we have been in, as the 0.70 level has offered significant selling pressure, and the 0.68 level underneath has offered significant support.
AUD/USD Video 25.06.20
I find this area interesting, because we are currently debating whether or not we can break above a major resistance barrier above at the 0.70 level, that extends all the way to the 0.71 level. At that point, the market would have changed the overall trend. I do not necessarily think that is going to happen quickly, but if it does happen it is something that I am going to be paying a lot of attention to, because quite frankly the trend changing could be one of those trades that you can hold for months, if not years. Having said that, I do not think that is highly likely based upon the recent action that we have seen.
We are probably much more likely to see the market reached down to the 0.6675 handle, reaching down towards the 200 day EMA. The 200 day EMA has just been crossed by the 50 day EMA so that is bullish in the sense that the ultra-longer-term traders will be paying attention to it, but I find quite often that the indicator is late. At this point, I think we probably pull back towards those moving averages given enough time.
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This article was originally posted on FX Empire
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