The Australian dollar broke down a bit during the trading session in early hours on Wednesday, as we continue to see a lot of buyers underneath. This is a market that continues to be very choppy and difficult, but it is well supported underneath at the 0.70 level. At that level, there seems to be a massive amount of buying pressure extending all the way down to the 0.68 level, so it’s very likely that we are trying to build up some type of massive bottom and a longer-term chart.
AUD/USD Video 21.03.19
The market continues to undulate due to the Chinese economy and of course the US/China trade relations. With that being the case, it’s very likely that we continue to see headlines move this pair. Beyond that, we also have the Federal Reserve making a decision on Wednesday, which although nothing major is expected, it does make sense that people will be paying attention to the possibility of the balance sheet runoff. Ultimately, it’s likely that we will see whether or not we have the greenback going higher or lower. If we get any type of softness in the greenback it will only propel this market higher. I believe at this point we are looking at a longer-term bottoming, and that of course could be a longer-term “buy-and-hold” scenario.
The 0.72 level above has been resistance that extends to the 0.7250 level. If we can break above there, then the market should go much higher. I have no interest in shorting the Aussie at all right now as we are at a major low.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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