The Australian dollar has initially pulled back on Monday but found enough buying pressure underneath the turn things around and rally significantly. By doing so, the market looks as if it continues to see the same attitude overall, simply buying dips as they occur. That doesn’t mean that we can break out to the upside significantly, because quite frankly I think there are so many issues out there that could keep the Australian dollar down that it’s difficult to hang onto a long position. However, when you look at the longer-term charts there is the opportunity for a little bit more clarity.
AUD/USD Video 26.03.19
Starting at the 0.70 level underneath, there is a significant amount of support extending all the way down to the 0.68 handle. That is seen as a major area on the monthly charts, something that doesn’t give way very easily. With that in mind I continue to pick up little bits and pieces of value when we dip but take profits just as quickly. If we can break above the top of the candle stick from a couple of days ago, then perhaps we could go to the 0.7250 level.
If we can break above there, then it’s likely that we could go as high to the 0.75 handle above. Short-term pullbacks again will continue to be buying opportunities, but for only short-term trades. Overall, this is a market that continues to be noisy but it also offers a lot of short-term opportunities for those of you that can live on the 15 minute charts for example.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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