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Christopher Lewis
AUD/USD

The Australian dollar has gone back and forth during trading on Wednesday, as we continue to see a lot of noise in the market. Quite frankly, the Australian dollar is a bit of her stretched and at the very least we need to digest some of those gains, if not pullback. Even the bullish traders out there would have to admit that the Australian dollar got way ahead of itself. That being said, the market is likely to see the 0.70 level above will continue to cause a lot of resistance that extends all the way to the 0.71 handle. If we can break above there, then I believe that it is more of a trend change, and that will of course mean quite a bit more.

AUD/USD Video 02.07.20

To the downside, the 0.6675 level is an area where there should be plenty of support, perhaps based upon the previous resistance, and of course the 200 day EMA that is sitting right in that area. With that being the case, the market is likely to see a lot of volatility in choppiness, and if you take a look at the chart right now, you can make an argument for a bit of a symmetrical triangle, so it does look like we are trying to build up momentum to go somewhere. With Thursday being the jobs number, it is obvious that the market is getting ready to make its move, but I think that a breakout above the 0.71 level would be a lot to ask. Even if we do rally from here, it is likely that we will fade signs of exhaustion.

For a look at all of today’s economic events, check out our economic calendar.

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