The Australian dollar got hammered during the trading session on Wednesday, reaching towards the vital 0.70 level that I have been paying so much attention to recently. With that in mind, it makes sense that the market will probably go looking to this area for buying pressure, which has been quite reliable for some time. The US dollar has been strengthening in general but keep in mind that the market has been very resilient near the 0.70 level, and of course it shows up on the monthly chart as well. That’s something that you can’t ignore, and as a result you should be paying close attention to that level and whether or not we get some type of bounce. I suspect we will, so I’m willing to buy down here.
AUD/USD Video 25.04.19
Beyond that, I think that there is 200 pips worth of support, so in general this is a market that will be very difficult to break down. I am aware that the US dollar strengthening against the Euro and many other things right now, but the Aussie has been so heavily defended in this area that I have to believe it will be yet again. This is a market that I have been buying on dips and collecting 20 or 40 pips or so overall. I don’t see anything on this chart that tells me the world is about to suddenly change. Ultimately, this is a market that’s almost impossible to sell, even though it looks horrible in the short term. I’m willing to jump in.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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