The Australian dollar has gone back and forth during the trading session on Monday to kick off the week, as we continue to see a lot of choppiness in this general vicinity. We had recently broken below the 0.68 level which of course is a major support level that I’ve been talking about here at FX Empire for weeks, and now we have even tested the market level for resistance and shown it to hold. That of course is bearish and it does suggest that we could see a little bit of follow-through to the downside but the last several days have been a lot of consolidation after a massive selloff. This would be expected, as markets don’t move in one direction forever.
AUD/USD Video 20.08.19
To the downside, I suspect that the 0.67 level will be somewhat supportive based upon the hammer from a couple of weeks ago, but ultimately I believe that we probably go down to the 0.65 handle as well. That’s a major area on the monthly charts, so it’s something that should be paid attention to. Overall, I believe that the market continues to favor the downside but it will of course chop around in the meantime. Keep in mind also that this market is highly influenced by the US/China trade relations which are a complete mess currently.
If we did break above the 0.6833 handle, then it may open the door to the 0.69 level or maybe even the 50 day EMA which is just below there and painted in red. Overall though, I do think that the market continues to find reasons to sell.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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