The Australian dollar has rallied a bit during the trading session on Friday, only to give back much of the gains. Because of this, it looks as if traders are starting to take profits going into the weekend. That’s also an area that I suggest it could be a bit of a problem but the longer-term chart looks as if we are trying to form some type of floor, with the 0.70 level being the start of that major support level. I think the Australian dollar of course is going to be highly influenced by the US/China trade situation, as we got some good news over the week, but not a solution.
AUD/USD Video 14.01.19
Remember that the Federal Reserve is starting to show cracks in its resolve of raising interest rates, so I think at this point it makes sense that the bullish pressure will persist longer-term, but right now it looks likely that we need some type of pullback to build up a bit of value. Expect volatility, but I think that sometime in the next couple of days we should see a return to buyers jumping into the marketplace. The 0.70 level underneath should be a lot of support though, so I think that the pullback will be somewhat shallow. I think you could short this market for a very quick trade, but I would be very cautious about doing so as we have seen a massive move higher. I think it’s probably easier to simply look for support underneath.
This article was originally posted on FX Empire
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