The Australian dollar has initially tried to rally during the trading session on Wednesday but gave back the gains as we continue to see a lot of volatility when it comes to the US/China trade relations, and then of course by extension the Australian dollar. That being said, it’s very likely that this market will continue to chop around, showing signs of indecision as we have to make serious moves in one way or another sooner or later. After all, the currency markets don’t sit still forever, and we are at a major support level.
AUD/USD Video 20.06.19
All that being said, we have the Federal Reserve statement that will obviously come into play, just as we will eventually figure out what’s going to happen between the Americans and the Chinese. If they can make some progress at the G 20 meeting, then we could get some relief in the Aussie over the next week or so. However, if we don’t get any type of resolution, we could eventually have the market “give up” on the Hope, and that will probably break below the 0.68 handle at that point. To the upside, the 0.70 level above is massive resistance, so it’s likely that we will continue to see the market say somewhat range bound in the short term, but I do think that given enough time we will probably break out of this range and when we do it should be a rather explosive move. To the downside we could go as low as the 0.65 handle, and to the upside it could be a trend change.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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