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Christopher Lewis

The Australian dollar initially pulled back a bit during the trading session on Monday, but then turned around to reach towards the top of the range from the previous session almost immediately during the US session. Keep in mind that several banks around the world were closed due to Easter Monday, so the liquidity could have been a bit of an influence. If we can break above the 50 day EMA to the upside, the market is likely to go looking towards the 0.65 handle after that. Obviously, the 0.65 level is an area that will attract a certain amount of attention due to the fact that it is a large, round, psychologically significant figure.

AUD/USD Video 14.04.20

To the downside, if we were to break down below the bottom of the range for the Friday session, then we could get a pull back towards the 0.62 level, maybe even the 0.60 level after that. All things being equal, the market is trying to figure out whether or not we have the “all clear” for risk appetite. The market participants continue to see a lot of back and forth due to the Federal Reserve throwing so much money into the market, and a decision to be made whether or not this is a good sign or not going forward. The US dollar has gotten hit a little bit due to the fact of the quantitative easing, but one has to wonder whether or not there is any global growth going forward, which of course will have a detrimental effect on this pair.

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