The Australian dollar initially fell during the trading session on Monday, but then turned around as the Federal Reserve has suggested that it is going to buy plenty of assets, trying to lift the market overall. That being said, that puts a little bit of negativity on the US dollar, but I do think that longer term it’s likely that the Australian dollar will continue to struggle, as the 0.60 level above should be rather resistant. Ultimately, this is a market that has a lot of negativity built into it due to the fact that the global economy is slowing down. At this point, it looks as if the market is trying to carve out some type of consolidation area. The 0.55 level underneath should be support, while the 0.60 level could be resistance.
AUD/USD Video 24.03.20
If we do break above the 0.60 level, then it’s likely that the market goes looking towards the 0.6250 level, and then eventually the 0.65 level. Ultimately though, this is a market that is negative for a reason but is probably a bit oversold in general. At this point, looking for some type of exhaustion is the best way to go in order to start selling, because the Australian dollar has a lot of external forces working against the right now in the slowing global economy. With that in mind, I don’t have any interest in buying this market even though I recognize we could get a little bit of a bounce.
This article was originally posted on FX Empire
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