The Australian dollar has gone back and forth in a 50 pip range for two weeks. Unfortunately for most traders, they look at this as a very difficult market to trade but quite frankly if you are willing to grind down towards a 15 minute chart, it gives you the ability to pick up quite a bit of profits. If you are short-term trader, we have a clearly defined box to trade the market in. The 0.68 level is massive resistance, while the 0.6750 level is massive support
By simply going back and forth, you have made quite a bit of profits over the last couple of weeks. As the pair is highly sensitive to the US/China trade relations, it’s very difficult to imagine that we will get some type of conclusive move and less things deteriorate between the Chinese and the Americans. We know that a trade agreement is quite some way away down the road. This means that the most likely scenario is that we continue to see fear and concern, and that means that it’s very likely we continue the move lower.
If we break down below the lows of the trading session from Monday, it’s likely that we go looking towards the 0.65 level after that. To the upside though, if we were to somehow break above the 0.6825 level, and without some type of an agreement between the Americans and the Chinese, then the 50 day EMA will start to come into the picture, offering resistance just above the 0.6850 level. That being said, it’s essentially a “sell the rally” type of situation. Ultimately, I think that the market continues to favor the US dollar against most currencies anyway, and of course the Aussie will be any different. Beyond all of that, there are serious concerns with the Australian housing bubble.
By simply going back and forth, you have made quite a bit of profits over the last couple of weeks. As the pair is highly sensitive to the US/China trade relations, it’s very difficult to imagine that we will get some type of conclusive move and less things deteriorate between the Chinese and the Americans. We know that a trade agreement is quite some way away down the road. This means that the most likely scenario is that we continue to see fear and concern, and that means that it’s very likely we continue the move lower.
If we break down below the lows of the trading session from Monday, it’s likely that we go looking towards the 0.65 level after that. To the upside though, if we were to somehow break above the 0.6825 level, and without some type of an agreement between the Americans and the Chinese, then the 50 day EMA will start to come into the picture, offering resistance just above the 0.6850 level. That being said, it’s essentially a “sell the rally” type of situation. Ultimately, I think that the market continues to favor the US dollar against most currencies anyway, and of course the Aussie will be any different. Beyond all of that, there are serious concerns with the Australian housing bubble.