The Australian dollar has fallen somewhat significantly during the trading session on Friday, after the RV a statement. However, we turned around of form a nice hammer based upon a support level below, and now the hammer forming for the day is a very positive sign. Quite frankly, I think that the 0.70 level underneath is a longer-term “floor” in the market, and therefore buyers will continue to be attracted to this pair in this general vicinity.
AUD/USD Video 11.02.19
Don’t get me wrong, there will be the occasional fear trade, meaning that we will selloff as the headlines come out that are negative with the US/Chinese trade war situation. Nonetheless, this is a market that clearly has found a hard bottom underneath, and when I look at the monthly chart you can see that the 0.70 level extends at least 200 pips four massive support. This is a longer-term “buy-and-hold” level, if you have the wherewithal and the trading capital to make that type of trade. Quite frankly, this is no longer a “by on the dips” market more than it has become an investment in this region. After all, the Federal Reserve has softened its stance and we are starting to see Gold pick up, so that could be one of the reasons for this market to turn back around. Ultimately, it’s going to be choppy but I do believe that large money is sitting just underneath trying to support the Aussie in this region. I have no interest in selling, but I do recognize it will be difficult to get above the 0.7250 level.
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This article was originally posted on FX Empire
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