The Australian dollar has been weak for some time now, reaching down into this major support level. This major support level is something that I have been watching for some time, and I believe there is a lot of order flow in noise in this 200 point range. The 0.68 level underneath should be massive support, so I think there are plenty of buyers down there. However, if we break down with a significant daily close underneath that level, it could be a signal that the Australian dollar is in real trouble. At that point, I think that it’s much easier to go to the 0.65 level.
AUD/USD Video 23.05.19
To the upside, I believe that the 0.70 level is going to be difficult to get above, but if we do this is a market that could really take off if we get good news coming out of the US/China trade situation. The RBA looks as if it could cut interest rates but has yet to do so and if there is a recovery in Sino-American relations, that would probably jolt the Australian economy higher.
In the meantime, I believe that this is a market that’s going to be difficult to trade because we are at such a major inflection point on longer-term charts. That being said, I have a couple of major levels that I’m watching on the chart and simply leaving it at that for the time being as there seems to be a lot of indecision out there.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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