The Australian dollar has struggled to break above the 0.70 level yet again during the trading session on Wednesday, as this area has been a bit of a “brick wall.” It extends all the way to the 0.71 handle, so do not be surprised at all to see this market struggle and therefore I think it is only a matter of time before we pull back yet again. To the downside, I see the 0.68 level as a major level of support, so I think that is probably going to be the target on any type of breakdown. A break down below there, we probably go down towards the 200 day EMA near the 0.6675 handle.
AUD/USD Video 09.07.20
The 50 day EMA has just crossed the 200 day EMA in the past couple of weeks, so in theory that makes it an uptrend for a lot of traders, but it is not until we break out above this resistance zone that people are going to take the move seriously. This is a marketplace that continues to chop around in general though, so I am more of a range bound trader when it comes to the Aussie right now than anything else. Eventually, we will break out of this consolidation and it will lead us to a bigger move. Right now I just do not see that happening now.
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This article was originally posted on FX Empire
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