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Christopher Lewis
AUD/USD Midday chart, October 30, 2018

The Australian dollar has rallied a bit during the trading session on Tuesday, slamming into the 0.71 level, an area that has caused a bit of resistance recently. However, we are making “higher lows”, which of course is a sign that the buying pressures are starting to pick up a bit. If we can break above the highs of the last several days, then I think it opens the door to the 0.7150 level. Overall though, the market looks likely to continue to struggle, and I believe that the market probably won’t be able to rally for the longer-term. It is because of this that I think if we do get a significant bounce or bring out from here, it’s likely that we will start selling again.

AUD/USD Midday Video 30.10.18

I believe that the 0.70 level underneath is going to continue to be a crucial level to pay attention to. The large come around, psychologically significant figure giving way to selling pressure could open the door to the 0.68 handle, which is a longer-term level of importance based upon monthly charts. I think that if we were to break down below there, the Australian dollar could break down rather drastically. At this point, if we do break out to the upside I think that it is going to be a short-term opportunity at best. Keep in mind that the Sino-American relations continue to make a huge impact on this pair, so if we do get good news out of that situation, then the Australian dollar will probably be the first place that traders start buying.

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