- The Aussie dollar fell pretty significantly during the trading session on Monday as we continue to see a lot of consolidation overall.
- All things being equal, this is a market that I think given enough time probably continues to see a lot of questions asked about it in this general vicinity.
- I think the 0.6450 level is a significant area of short-term support, but if we break down below there, then I think we can look into the 0.635-0 level given enough time.
Overall, I think this is a situation where the US dollar continues to beat up on everything else, and it's possible that we will continue to see more of a fade in the rally type of scenario. If we can break above the 0.655-0 level, then you can start to make the argument of a little bit of a rally from the Australian dollar.
Top Regulated Brokers
But as I look at the forex world in the US dollar across the board, I think you've got a situation where anytime you get a chance to pick up cheap US dollars, that's exactly what you should be doing. In general, I think this is a market that is short-term range bound trading more than anything else. And therefore, you have to look at it through that prism.
Slightly Oversold
We are a little oversold, so a little bit of a bounce makes a certain amount of sense, just as a rally towards the 0.6550 level probably offers a short-term selling opportunity, all things being equal. It's worth noting that the PMI numbers on Monday came in for the manufacturing sector a little better than anticipated, but it is still in the contraction area. So, with this, I don't know that much changes. You also have to keep in mind that the jobs number is on Friday, so that is worth paying attention to.
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