The Australian dollar has pulled back just a bit during the trading session on Wednesday, as we continue to hover above the crucial 0.70 level, an area that extends all the way down to the 0.68 level on the monthly chart as a major support. Because of this, I certainly won’t be interested in shorting the Aussie, although we have major concerns with the housing market there. At the end of the day though, most currency traders trade the AUD/USD pair as a proxy for China. As the Chinese stimulate their economy, that should help the Australian dollar.
AUD/USD Video 14.03.19
That being said, I’m looking for supportive signs to add to a longer-term core position. I have no interest in trying to short this market until we break down below the 0.68 level, something that does not look likely to happen anytime soon. After all, look at the latest rejection over the course of 48 hours. It was a massive turnaround after a flash crash. Things like that don’t happen accidentally, somebody with a lot of money came into the market and push things to the upside.
To the upside, I think that the 0.72 level will be eventually tested, and then perhaps a break above there could send this market towards the 0.7250 level next. Once we clear that area, I would be very bullish and aim for at least 0.75 and think at that point we would be in the midst of a major trend change on longer-term charts as well.
Please let us know what you think in the comments below
This article was originally posted on FX Empire