- Although we rallied early in the Wednesday session, the Aussie is still exhibiting a lot of erratic behavior.
- However, there are currently a lot of sellers above who could enter the picture. I believe that the market will remain extremely noisy as a result.
The Aussie Continues to Chop Around, Despite the Rally Today
Early on Wednesday morning, there was a slight increase in the value of the Australian dollar. However, the 0.65 level is currently a region that is providing temporary support. However, we have already succeeded in this area. Thus, in my opinion, it's essentially a target suggestion. If we dive further below this point, we find that many buyers are flooding the 0.6450 level. On the other hand, the 50-day EMA and the 200-day EMA stand in the way of a significant upward move if we reverse course and rally from here. As far as I can tell, the ceiling is at 0.66. If we were to break above there, this market could really take off, but I think that would have more to do with a lot of US Dollar weakness at that point more than anything else.
I believe that we therefore remain in the range of 0.6450 to 0.66 above. I believe that in general, we go back and forth in this kind of situation, simply trying to see if we can get anything more than a quick trade. Although risk appetite is obviously all over the place right now, I believe that overall, this market will continue to move in tandem with it. However, the Australian dollar is a commodity currency that is heavily influenced by Asia. Therefore, you need to be aware of all of these things at once.
As things stand, I believe there are many unanswered questions about the direction the world is headed. In light of this, it does make some sense. Here, we just move around a lot. I have a pretty neutral opinion of this pair, and I'm not sure what will have to happen for me to feel differently. It's definitely an excellent pair if you're a short-term scalper, but other than that, you might find it challenging to trade for anything significant or large. Because of this, I believe you should trade the Australian dollar with extreme nimbleness and extreme caution regarding your positions.
Ready to trade our Forex daily analysis and predictions? Check out the largest forex brokers in Australia worth using.