The Australian dollar continues to be very noisy, as it simply has nowhere to be. Because of this, it should not be a huge surprise that we are closing out the week just above the 0.77 handle. Ultimately, this is a market that is trying to find somewhere to go, and at the end of the week we ended up forming a bit of a shooting star, on the weekly timeframe. That being said, the 0.78 level continues to be very difficult to get above, and that has only been reiterated this week.
AUD/USD Video 26.04.21
At this point in time, it is very difficult to put a lot of money to work, because we have a shooting star on the weekly candlestick, but we also have a couple of shooting stars on the monthly chart. In other words, the market is not really quite ready to decide what they want to do yet, and as long as that is going to be the case, it is difficult to imagine that we are going to have a whole lot of clarity. Quite frankly, markets look like they are a little bit confused, so at this point in time I think we are probably going to have to be very cautious about putting a bunch of money to work.
To the upside, if we were to break above the shooting star from earlier this week, that might be the signal that we are ready to go to the 0.80 level. This is all about risk appetite, which is all over the place right now and therefore caution is a better part of valor. I suspect we will continue to chop back and forth.
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