The Australian dollar has gone back and forth during the course of the trading session on Thursday as we continue to hang about the 0.78 level. At this point, the market looks as if we are trying to figure out whether or not we are going to kick off the massive shooting star for the month of February. That being said, if we were to break down below the 50 day EMA on a daily close, that might be a selling opportunity. On the other hand, the market has recently tried to reach towards the 0.80 level, an area that is crucial on longer-term charts.
AUD/USD Video 5.03.21
Furthermore, the 0.80 level offers resistance all the way to the 0.81 level as we have seen a huge flip in the overall markets for longer-term moves. If we were to break above the 0.80 level, that could open up the door to the 0.90 level over the longer term, just as this could be the “absolute top” going forward. This is why I think the next couple of weeks will be very noisy, and worth paying attention to. At the very least, I think the one thing that you are going to have to pay attention to is that it is very unlikely that we simply slammed through that resistance barrier above, and I think we are going to have to pay special attention to the commodity’s markets, because if they start to lose strength, then the Aussie will more than likely pay the price. At this juncture, it certainly looks as if the markets are not quite sure what to do, and rising yields in America have also cause major issues to strengthen the greenback against a lot of other currencies.
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This article was originally posted on FX Empire