The Australian dollar has shown a bit of resiliency during the trading session on Friday, initially breaking down a bit but then turning around to form a slightly positive candle stick. At this point, it looks as if the 0.68 level is trying to offer some type of support but I think more than anything else we are seen the market getting ready to bounce due to an oversold condition. The 0.69 level above is resistance, as it was a previous area of interest. At this point I believe that selling is the only thing you can do, because quite frankly even though this market has been oversold, and that we could bounce, it’s likely that we will get another opportunity. Every 50 pips or so we are starting to see trouble.
AUD/USD Video 12.08.19
The 0.69 level is significant resistance, a lease from a psychological standpoint. Some type of exhaustive candle is an opportunity to start shorting, especially if we form something along the lines of a shooting star. Beyond that, the 50 day EMA is starting to creep down towards that area and that should give us an opportunity to find more selling pressure as well. The Aussie dollar will continue to struggle due to the US/China trade troubles and of course the global slowdown as Australia is such a heavy commodity driven economy. All things being equal, I’m simply looking for “value” in the US dollar to take advantage of and start trading.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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