- Early in Thursday's trading session, the Australian dollar rose to test the 200-Day EMA indication in addition to the 50-Day EMA.
- Furthermore, a lot of people will need to pay attention to the large amount of resistance that lies just above.
- I think this is a situation where we continue to see a lot of overhead problems, so therefore I think it’s a situation where the market will continue to be extraordinarily noisy.
As the market tries to find its feet, the Australian dollar slightly strengthened in the early going on Thursday, touching the 200-day EMA. It's important to note that there does appear to be some pushback whenever we rally. In my opinion, the Australian dollar is currently virtually trapped in a region of noise and consolidation. This is typical for many of the overall major currencies around the world, so therefore it makes sense here as well.
Now, the question is, where is the summit? That's what, I believe, is being asked. You will need to keep a close eye on the 0.6625 level at this point, in my opinion. However, you also need to keep an eye on the 200-day EMA, which has already generated some buzz. I believe there is a good chance we can reach the 0.67 level if we manage to break above the 0.6625 level.
The Potential Magnet for Price
The 0.6450 level serves as support and the 0.65 level acts as a bit of a price magnet. Subsequent to the 0.6450 mark, significant selling opportunities arise. Remember that the Australian dollar is heavily impacted by the state of the global economy, the US and Australian interest rates, and, of course, the question of whether or not China is starting to recover economically. After all, it is important to pay attention to the recent state of the Chinese economy, which has been somewhat chaotic. The most pertinent concern here is whether the market has enough momentum to break over the 0.6625 level rather than if it can continue higher.
We certainly seem like we might try as things stand right now, but it's unclear if we actually have that momentum. It seems likely that we are merely delineating a novel trading range. It should become somewhat more apparent in the near future, in my opinion, but for now, there will be a lot of instability and loud behavior.
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