Australian Dollar Has Quiet Session

The Australian dollar has gone back and forth during the course of the trading session on Monday as we had seen a major breakdown in this pair on Friday, and now we are trying to settle things as to which direction we want to go. That being said, with Martin Luther King Jr. Day in the United States, meaning that liquidity would have been an issue at certain times of the day. Nonetheless, the 0.72 level does seem to have made a bit of a difference, and therefore it looks like we may settle right around this area. Given enough time, we will obviously have to make a real decision, but right now it looks as if we are simply going to be comfortable spinning our wheels.

AUD/USD Video 18.01.22

The 50 day EMA sits just above the candlestick, so it does suggest that perhaps we are simply killing time in an area that would of course keep a lot of attention, but if we break down below the 0.72 level, it is likely that we could go down towards the 0.7150 level. All things being equal, this is a market that has been in an upward channel, so it is possible that we could see the market continue that channel, but if we do break down from here, it is likely that we could see a move to the upside, but obviously we would need to see the 50 day EMA broken above on a daily close. All things been equal, this is a market that it is probably going to be very choppy to say the least.

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