The Australian dollar has initially tried to rally during the trading session on Friday but gave back the gains to turn around and fall towards the 50 day EMA. The 50 day EMA of course is an area that has acted quite a bit like a magnet for price lately, and I do not see that changing anytime soon. Because of this, the market is likely to go back and forth in this general vicinity, just as we have over the last couple of weeks. Quite frankly, we desperately needs some type of catalyst to get the Forex markets moving, which we simply do not have at the moment.
AUD/USD Video 14.06.21
Stagnation is probably the keyword here, as we do not have any clear cut direction one way or the other over the last couple of months. Because of this, I think the pair has been relegated to a five-minute scalping type of situation, and that is only if you have the time to sit and watch the market. Because of this, the market will probably continue to see a lot of choppy short-term behavior, so as far as a longer-term signal is concerned, it is essentially going to be thought of as “dead money”, as there is no clear directionality.
However, if we were to break above the 0.80 level that would be an extremely bullish sign, just as a break down below the 0.75 level would be extremely bearish. At this point, we seem content to simply sit in the middle of all of that and spin our wheels. The trade spat between China and Australia could also have an effect on this pair as people are waiting to see how that plays out.
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