The Australian dollar rolled over just a bit during the beginning of the Wednesday session, breaking through the 50 day EMA. Looking at the Australian dollar, we can see that there is plenty of support at the 0.70 level, an area that continues to be huge when it comes the longer-term trading. At this point, the 0.70 level is the beginning of support down to the 0.68 level on the monthly charts, so that obviously will have a certain amount of effect on where we go next. At this point, I still like buying dips in the Australian dollar, as we have such a major support level that is obvious to the entire world.
AUD/USD Video 28.03.19
This isn’t to say that there is a big trade coming, I don’t know that. However, small trades should make it part of your arsenal of playbooks, and therefore I think that it makes a lot of sense to pick up little dips here in the Aussie dollar as they appear. Simply put, I think that every time we dip about 30 or 40 pips, you can step into this market and pick up 20 or 30 again.
This pair will have quite a bit of influence coming from the US/China trade relations talks, and therefore I anticipate that it will continue to flounder in this area until we get some resolution. If we finally do get resolution in that situation, then it’s very likely that the Australian dollar will be the biggest beneficiary as they supply so much in the way of raw materials for China. Until then, were probably going to repeat this back and forth pattern with major support.
Please let us know what you think in the comments below