The Australian dollar initially tried to rally during the trading session on Thursday but continues to see a lot of trouble at the 0.70 level, which has been extraordinarily difficult for some time and it also leads to quite a bit of resistance all the way to the 0.71 level after that. At the first signs of exhaustion him willing to start shorting this market, because I think it is going to go down towards the 0.68 level which has been massive support. That leaves us with a 200 point range to trade back and forth, so at this point it looks like we continue to see a lot of the same but if we were to break above the 0.71 handle, that would be an extraordinarily positive sign.
AUD/USD Video 10.07.20
Breaking above that level makes the Aussie more of a “buy-and-hold” opportunity, perhaps one that runs all the way to the 0.80 level, which would be quite a remarkable move. This would show a complete change in overall tone and would be something that I would be more than willing to jump on top of an continue to buy dips. Until then, I have to assume that the resistance will continue to hold, and if that is going to be the case, I am more than willing to sell signs of exhaustion. Quite frankly, I think the world is trying to figure out where it wants to go next, and the Australian dollar is a proxy for that as we continue to trade in this range.
For a look at all of today’s economic events, check out our economic calendar.