The Australian dollar did very little on Wednesday, but quite frankly that’s what supports world did, simply sat still. There’s a severe lack of news to move the markets, so it’s hard to believe that we are going to see a major move in the short term. Beyond that, we are essentially in a range bound market here, as well as many of the other major pairs. I believe at this point the 0.68 level underneath is massive support, with the 0.70 level about being massive resistance. Because we are trading just slightly above the 0.69 level, we are essentially at “fair value” as far as the market is concerned.
AUD/USD Video 30.05.19
However, this pair will move up and down with the sentiment surrounding the US/China trade negotiations more than anything else. Lately things have been souring but we haven’t seen any major moves by either one of the powers involved. As long as that’s the case, we may be able to avoid some type of major meltdown. However, if things get ugly and get worse rather quickly, it’s likely that we will see this pair dropped drastically, perhaps to the 0.68 level and down to the 0.65 level.
On the other hand, if we get some type settled negotiation, this is probably the first currency parish be looking to buy, because it should go much higher, at least the 0.72 handle on its way to 0.75.
Please let us know what you think in the comments below
