The Australian dollar has initially rally during the course of the trading session on Friday but gave back gains rather rapidly as situations in China continue to cause issues with risk appetite. The Australian dollar of course is very sensitive to the overall risk appetite around the world, and as long as we have problems with the overall risk situation, the Australian dollar will be somewhat sensitive to the latest headlines.
AUD/USD Video 27.09.21
To the downside, we have the 0.72 level is a major support level, and therefore if we break down below there, I think that the Australian dollar will fall rather hard. At this point in time, the market is likely to continue to see downward pressure as there are a lot of concerns around the world beyond China as well. That being said, the market is likely to see a lot of noisy behavior. That being said, if we do turn around and rally to take out the candlestick to the upside from the previous session, then we could go looking towards the 50 day EMA above.
The market will continue to be noisy regardless, due to the fact that there are so many moving pieces right now. That being said, we have been in a downtrend for a while so it should not surprise that we have continued to see downward pressure. All things been equal, this is a market that I think that this is a market that continues to see a lot of negative pressure, and therefore at this point in time it is likely that we will continue to see pressure, and therefore I am paying close attention to the bottom of the last several candlesticks.
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