The Australian dollar has fallen again during the trading session on Thursday after initially trying to rally. Quite frankly, this is all about US dollar strength and has almost nothing to do with Australia itself. The US dollar has broken the back of the Euro and the Pound, so of course you’re going to see the Australian dollar struggled against what is the best performing currency right now. Ultimately, there is a massive amount of support underneath that extends down to the 0.68 handle. With that in mind, this is a market that you should be paying attention to even if you are trading it, because although it is going to be difficult to short this pair – let’s face it, there’s easier money to be made against other pairs – this could be the first place where you see the US dollar calm down and give you a hint as to start buying here, or perhaps one of the beat up currency pairs such as the EUR/USD.
AUD/USD Video 26.04.19
I frankly though, if I’m going to short the US dollar I think the Australian dollar is probably the best route to go. On a break above the highs of the Thursday candle stick then you can start to make an argument for a bounce and a return towards the 0.71 handle. Otherwise, this is probably going to be a slow grind or lower, and quite frankly you can find more momentum and other pairs. This is basically a secondary indicator at this point, or a potential long based upon price action.
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This article was originally posted on FX Empire
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