The Australian dollar has gone back and forth during the course of the trading session on Tuesday as we continue to see a lot of questions about the 0.75 handle and of course the 200 day EMA. Ultimately, the market is likely to continue to see a lot of choppy behavior, but if we can recover and rally towards the 0.76 level, that means that the Aussie should continue to climb and recover most of the losses. With that being the case, we could very well see more of a “risk on” attitude around the world when it comes to markets in general, which of course helps the Aussie in and of itself.
AUD/USD Video 23.06.21
Keep in mind that Jerome Powell will be speaking in front of Congress during the trading session, so it does of course suggests that there could be a bit of volatility when it comes to the US dollar. Nonetheless, I think at this point in time we are looking at a potential decision-making point, as a break down below the bottom of the last couple of candlesticks could be rather negative. We will probably see a bit of choppy behavior, but ultimately, I think that we will be making a very significant move rather quickly.
With that being the case, I am paying close attention to these levels and will be trading accordingly for what I believe will be the next significant move. Ultimately, I think given enough time this market makes a nice move, but this currently looks as if it is going to be based upon the Federal Reserve more than anything else.
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