After the RBA chose not to cut rates overnight, the Australian dollar strengthened significantly. However, we are starting to struggle at the 0.70 level again, so it’s very likely that we’ve got some choppiness ahead of us. The 0.7060 level above continues to be massive resistance, so as long as we can stay underneath that level, it’s likely that we could chop around more than anything else. If we break down below the 0.6950 level, then we go much lower, perhaps in 50 pips increments.

AUD/USD Video 03.07.19

Ultimately, I do believe that we are trying to form some type of longer-term bottom in this market, which can take quite some time. That being the case, more choppiness is probably on the table, as we simply don’t know where to go at this point. Beyond that, the US/China situation may have gotten slightly better, but with anything really settled? That’s the question that a lot of traders are starting asked themselves, as it doesn’t look like much has been finished, but at least it hasn’t gotten worse so that of course helps.

If we break to the upside, then we could see a move towards the 0.7250 level above. However, if we were to break down below the 0.68 level underneath, we could drop down to the 0.65 handle given enough time. Overall though, I believe that the market isn’t quite ready to make the big move that we should be seeing given enough time.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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