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Christopher Lewis
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AUD/USD

The Australian dollar has gone back and forth during the course of the trading session on Friday as we continue to stare down the idea of breaking above the 0.78 handle. If we can break above there, then it opens up the possibility of a move towards the 0.80 level, which is a very strong resistance barrier on the monthly charts. That being said, if we were to break above that region, which I believe extends to the 0.81 handle, it could open up the market to a much bigger move, perhaps as high as 0.90 above. With that being the case, I would become a “buy-and-hold” trader when it comes to the Aussie dollar.

AUD/USD Video 19.04.21

One thing that I cannot shake though is the fact that the Australian dollar has formed two shooting stars in a row on the monthly chart, and that typically means something. With that being the case, I am looking to sell this market if we get some type of momentum to the downside. Nonetheless, we are in an uptrend and it does make quite a bit of sense that we would see buyers underneath. Based upon the monthly structure, we could see a move down to the 0.71 handle, but really at that point in time I would anticipate that a lot of value hunters would get involved.

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The Australian dollar will continue to find buyers based upon the reopening trade, and as long as everything looks good, it is likely that the Aussie will eventually pick up a bit. That being said, the market had gotten way ahead of itself, so it makes quite a bit of sense a pullback comes.

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