The Australian dollar has rallied a bit during the trading session on Wednesday, reaching towards the top of the bullish and golfing candlestick from Monday that was so impressive. At this point, it looks as if we are failing though, especially on smaller time frames. I suspect at this point we will probably try to go below the 0.70 level and bounced back and forth. Ultimately, this is a market that will be very sensitive to the risk appetite of traders around the world, as the Australian dollar is so highly levered to China. I think at this point it’s a little bit difficult to get overly bullish but clearly the last couple of days have been rather interesting.
AUD/USD Video 04.07.19
I believe that between now and the jobs number we will probably continue to bounce around in this area, unless of course we get some type of headline involving the Americans and Chinese. Ultimately, Australian dollar traders pay quite a bit of attention to China, so at this point that will be the biggest driver. The jobs number on Friday will have its effect as well, but at this point it’s very likely that it’s going to be choppy over the next 36 hours or so.
If we do break above the 0.7060 level, then at that point I would consider this pair to be breaking out, and more than likely to go towards the 0.7250 level. To the downside, the 0.6950 level is support, but if we can break down below there it’s likely that the market goes down to the 0.69 handle after that.
Please let us know what you think in the comments below
This article was originally posted on FX Empire