Christopher Lewis
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The Australian dollar has broken down during the trading session on Wednesday to show signs of weakness, as we continue to dance around the same 100 points that we have been in for six days. The Aussie had previously shot straight up in the air to slam into the 200 day EMA, and now we have pulled back. If we break down below the 0.73 level, then it would be very negative, as it would have the market escaping this area of previous and current consolidation. At that point, I would anticipate that the Aussie goes looking towards the 0.71 handle.

AUD/USD Video 15.09.21

On the other hand, if we turn around a break above the 0.74 level on a daily close, then I think we probably retest the 200 day EMA. After that, the 0.75 level offers resistance as well, as it is a large, round, psychologically significant figure. If we were to somehow break above both of those areas, then this market could really start to take off and go much higher. Obviously, that would take some type of major move against the US dollar overall, which is something that I do not know that we are going to see with any type of clarity in the short term.

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Keep in mind that Australia also has the external influence of China to deal with, as there are a lot of credit concerns in the Chinese economy, and some of the economic figures have people concerned. If that is going to continue to be the case, then it is likely that we would see the Australian dollar suffer as a consequence.

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