The Australian dollar has gone back and forth during the trading session on Friday, heading into the weekend. This makes quite a bit of sense because the world is on edge when it comes to the coronavirus, and it makes quite a bit of sense that the Australian dollar will be a bit difficult to own as the Australian economy is so highly sensitive to everything that goes on in China. Ultimately, the Chinese are huge buyers of Australian copper, iron, and the like. With that, it’s very likely that the market will continue to move back and forth with headlines coming out of the mainland.
AUD/USD Video 17.02.20
Furthermore, the Friday session of course will have seen a bit of selling as people do not want to own the Australian dollar as a negative headline could come out and shock the market. The 0.67 level underneath is an area that is relatively important, as it begins the consolidation that was so important during the financial crisis. The consolidation area extended all the way down to the 0.63 level, an area that is massive in its implications, so it would not be overly surprising to see this market turned back around and fire off to the upside. Having said that, you should have plenty of time to look for signs of life and there is only the briefest introduction of support at this point, even though the area look somewhat supported, the reality is that the market doesn’t exactly look bullish at this point so buying still can’t be done. Having said that, selling would be a bit difficult.
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This article was originally posted on FX Empire
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