The Australian dollar has had a nice rally during the week, mainly due to the fact that the Chinese and Americans are meeting again, and it looks very likely that the Australian dollar is going to get a bit of a reprieve due to that. Ultimately, this is a market that will react positively to that but there are a multitude of reasons to think that this market will probably roll over. After all, the Americans and the Chinese have done nothing to move the situation forward, and at this point it seems very unlikely that the longer-term solution is anytime soon coming.
AUD/USD Video 09.09.19
The 0.70 level above is going to be massive resistance, but the 0.6850 level is also an area that was support, so that’s the short term resistance the buyers will need to get past. Either way, it is much easier to fade this market than it is to buy. That being said, this is of course a very strong looking candle but fighting the trend is a great way to lose money, something that a little bit of patience would overcome. To the downside, if we were to break down through the bottom of the candle stick we probably go looking towards the 0.65 handle, which is extraordinarily low from a historical standpoint over the last couple of decades. All things been equal though, it’s still a matter of simply fading rallies that show signs of exhaustion. We don’t have that yet.
This article was originally posted on FX Empire
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