The Australian dollar is rallying again during the trading session on Monday as we continue to see a lot of upward pressure. That being said though, the 0.78 level above is significant resistance and continues to fight the upward pressure that we have seen. All things been equal, the market is trying to take off to the upside but there are also concerns when it comes to the recent monthly candlesticks that of course look very negative. With that being the case, you should pay attention to the fact that both the February and March candlesticks were shooting stars, and that does suggest that there is quite a bit of negativity just above.
AUD/USD Video 20.04.21
Underneath, the 50 day EMA is starting to curl higher, so that should of course signified to some traders that we should go higher. That being said, the market is likely to see a certain amount of support in that area, and I think that there will be plenty of buyers underneath there. Having said that, if we were to break down below the 0.76 level, we will almost certainly test the 0.75 handle, opening up a much bigger move to the downside based upon the monthly chart. That being said, the market has been extraordinarily stubborn, so it certainly looks as if we have a big fight on our hands. I am still a bit suspicious of the Aussie dollar but at this point it all comes down to the US dollar and what is going on with it. It certainly looks as if there is a huge “debate going on” right now in the currency markets, and therefore expect a lot of choppy behavior in this general vicinity.
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