The Australian dollar fell hard during the trading session on Tuesday, breaking down to the gap, showing extreme negativity. Quite frankly at this point I would be hesitant to buy this market, at least after what we have seen over the last 24 hours or so. I do believe that there is massive support underneath at the 0.68 level though, so I would be much more interested in buying a supportive daily candle in that range. If we were to break down below there, it would signal an extremely negative sign when it comes to the US/China trade relations, and let’s face it we aren’t too far from that happening. I think this pair is going to simply be far too dangerous to put a lot of money into right now.
AUD/USD Video 22.05.19
Don’t get me wrong, I do think we are trying to search for the bottom, but I don’t know that we have found it quite yet. I’m not a seller, at least not until we break down below the 0.68 level, as it is the bottom of the 200 PIP support range that I see on longer-term charts. With that being the case, I believe that this area is going to be tricky to navigate. I do think that the 0.68 level will cause a certain amount of support though, so certainly I believe there might be an opportunity soon. However, I will be basing my trade decisions off the daily candle stick and therefore will remain very patient.
Please let us know what you think in the comments below
