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Christopher Lewis
AUD/USD

The Australian dollar initially tried to rally during the trading session on Monday but then turned to show signs of weakness midday. Ultimately, we are sitting on top of the 50 day EMA which of course is a large indicator that a lot of people pay attention to via technical analysis. It is relatively stable as of late and has offered nice support so we will have to wait and see whether or not it actually keeps the market somewhat supported.

AUD/USD Video 2.03.21

Regardless, I think the most obvious thing on this chart is that between the 0.81 level and the 0.80 level is massive resistance barrier that people will pay close attention to as it has been a major pivot point for longer-term traders. Quite frankly, if we were to break above the 0.81 handle, then we go much higher. However, there is a lot of work to do in order to finally break out to the upside. Having said that, I believe that as long as we can stay above the 0.75 level, we will eventually build up enough momentum to finally break out. However, if we break down below the 0.75 level that could cause some issues.

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A breakdown below the 0.75 level could open up several handles to the downside. I believe that this month is going to be very difficult, but as things stand right now you would have to think that we are going to trade between the 50 day EMA and the 0.80 level. Lots of noise in that general vicinity, so I think we are going to have to make a decision and I think in the short term a lot of back and forth is what we will see over the next couple of days at the very least.

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

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