The Aussie rallied slightly during the Thursday trading session as we continue to see many changes in the same area. That being said, the 50-day EMA is slightly higher and this is an area that should continue to generate little resistance, but if we were to break this level I think there will be a lot of resistance higher there as well. In fact, I think that between this location and the 0.78 level is an area that can and will cause serious problems.
AUD / USD Video 09.04.21
I think it is only a matter of time before there is significant selling in this market, although there is now talk of a “resumption of trading” and so people expect it to rise, but the price is king and we saw a couple of shooting stars in a row on the monthly chart … This creates an interesting conundrum, because if we were to reverse the break above the 0.80 level, we could go much higher.
Until then, I think this market will continue to struggle, but a move above the 0.78 level will force me to look for a move towards the 0.80 level. If we fall below the 0.76 level, then the market is likely to fall to the 0.71 level, which, while it sounds pretty sharp, will be just a correction and what has been a very bullish market for the last year or so. This gives the impression that the market is trying to create pressure to move in one direction or another.
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