The Australian dollar initially tried to rally during the trading session on Friday but gave back the gains and what would have been very low liquidity. After all, it was Good Friday and of course most large banks weren’t even involved in trading. With that in mind, as I look at the chart we have failed at the 200 day EMA which is pictured in black, which makes sense as it will attract a lot of action.
AUD/USD Video 22.04.19
Looking at the chart I suspect that we will probably see a significant support at the 50 day EMA underneath, which is pictured in red. The 0.71 level should be support, and then the 0.7050 level as well. The 0.70 level is a monthly support level and therefore I continue to buy this market would ever get a chance close to that level, to build up a large core position. If we were to break down below that level it’s supported all the way down to the 0.68 handle. Ultimately, I don’t have any interest in shorting this market anytime soon, so I’ll be out there hunting for value as it presents itself. The alternate scenario of course is that we turn around to break above the highs over the last couple of days, which of course is a bullish sign and could send this market looking towards the 0.7250 level. All things being equal, I’m not going to even entertain the idea of selling the Australian dollar until we are below the 0.68 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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