The Australian dollar has gone back and forth during the course of the last couple of weeks, showing a bit of hesitation. Ultimately, I think the biggest thing here is simply that the market has a lot of exhaustion coming into the marketplace, but I do think that gives us an opportunity to pick up value closer to the 0.75 handle. That of course is an area that should continue to be interesting due to the fact that it is not only a large, round, psychologically significant figure, but it was also the scene of a breakout. A pullback to that area will attract a lot of attention, and I would be all over that area if we see some type of supportive candlestick, perhaps even on the daily chart.
AUD/USD Video 18.01.20
To the upside, the 0.80 level would be a target, and of course would offer a lot of resistance as well, for the same reasons that the 0.75 level should offer support. When you look at historic charts, the 0.80 level has been an area of both support and resistance on even the monthly timeframe. I think at that point it is likely that we will continue to see a lot of value hunting due to the fact that we should see a significant amount of stimulus out there driving of commodities in value and demand, thereby pushing the Aussie higher. All things being equal, the market is likely to see plenty of value hunters out there just waiting to jump on board.
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