Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

The Australian dollar has rallied again during the trading session but seems as if it is struggling to capture the 0.72 handle with any type of solidity. At this point, we are a little bit over bought in the short term so it would not be a huge surprise to see a short-term pullback. You can also make an argument that we have just tested the previous uptrend line and failed, so that of course is something worth paying attention to.

AUD/USD Video 02.10.20

Ultimately, this is a market that has been very resilient against the US dollar, so it is not a huge surprise to see that we got overbought as well. Keep in mind that the Australian dollar is highly levered to the Chinese economy so that of course helps the situation. I do think that given enough time we are probably looking at the market simply behaving the same way the rest of the market does when it comes to the greenback.

I am not a big fan of shorting this pair, at least not until we break down below the 0.70 level. I do think that given enough time we could make that move but it is probably going to be easier to buy the US dollar against other currencies such as the Euro, Pound, etc. With that being said, expect a lot of noise but if the US dollar suddenly gets a serrated, this is probably the currency pair that you want to be involved in, due to the fact that it has been so strong.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.