The Australian dollar went back and forth during the trading session on Tuesday, showing the 0.70 level as massive resistance. In fact, we continue to see that as resistance all the way to the 0.71 level. If we can break above there, it would be a major breakout for the Australian dollar and probably lead to massive US dollar selling across-the-board. Signs of exhaustion here could be a sign that we are not quite ready to go higher yet, and it should be noted that this is an area that cause significant selling in the past so one would have to think that there are a lot of sellers that we need to get past in order to continue to show bullish pressure.
AUD/USD Video 08.07.20
Looking at this chart, I believe that there is support at the 0.68 handle, and right now I more or less am looking at this as a sideways market between the 0.68 level and the 0.70 level. If we break down below the 0.68 handle, then it is likely that the market then goes looking towards the 0.6675 level underneath where the 200 day EMA is. Ultimately, this is a market that has a lot of decisions to make in this area, but I do not know that we necessarily have the bullish pressure out there to break out yet, so my default position is likely to continue to go back and forth. At this point, short-term back-and-forth range bound trading is likely to be the best way forward, with smaller positions.
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This article was originally posted on FX Empire
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