The Australian dollar has been all over the place recently, as the market fell initially on Thursday but then turned around to break back above the 0.60 level. Ultimately, if the market eventually figures out what it wants to do it will probably be a pretty significant move just waiting to happen. Having said that, the market is very likely to see a lot of volatility and that makes quite a bit of sense considering that the Australian dollar is so highly levered to the Chinese economy and global growth overall. Because of this, expect a lot of noise.
AUD/USD Video 27.03.20
If the market was to break above the winds the shooting star, then it looks like we are probably going to go looking towards the 0.62 level. That’s an area that I believe will cause some issues as well, extending all the way to the 0.6250 level. All things being equal, I do believe that the market is going to continue to be noisy but overall, I think that it is a market that given enough time it’s likely that this market will break down. All things being equal, the market is likely to go looking towards the 0.55 level underneath. I do think that we need to retest the low again, in order to form some type of longer-term bottom. With this, I fully anticipate an opportunity to short again, but we may have to wait a couple of sessions in order to get that trading opportunity.