The Australian dollar fell a bit during the trading session on Thursday as we continue to see a lot of negativity around the global markets, and of course the Australian dollar is very sensitive to the global Outlook and of course the US/China trading relations, which of course is on the rocks right now. I think that if we can break down below the 0.70 level, we will then go to the 0.68 handle. Rallies at this point are selling opportunities and I believe that the 200 day exponential moving average above is massive resistance, so I think that the 0.7250 area will be attracted for sellers again. I have no interest in trying to buy the Australian dollar, and I think that signs of exhaustion after rallies will be selling opportunities.
AUD/USD Video 28.12.18
Ultimately, I think that the Australian dollar is going to continue to suffer at the hands of global jitters, so therefore I think that short-term selling opportunities will be paid quite a bit of attention to. I think at this point, we are looking at a lot of short-term trading. Fading the rallies will continue to work but I think it’s going to be difficult to do so on the daily chart. I think we are looking at 15 minute charts for opportunities, but quite frankly I think that this is the gift that keeps on giving, as the Australian dollar gets hammered time and time again as not only do we have the Sino-American problems, we also have a weakening Australian economy.