FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
AUD/USD

The Australian dollar initially rallied during the week, but as you can see has formed a lackluster candlestick by the time, we were all said and done. With that being the case, the market looks as if it is going to continue to see a lot of choppy behavior in this area. What I find particularly telling is that the March and February monthly candlesticks were both shooting stars, and although we formed a hammer during the weekly candlestick last week, we could not hang on to any type of momentum. This is not a good look for the Aussie, so at this point I have to think that we may be in danger of falling again.

AUD/USD Video 12.04.21

If we break down below the candlestick from last week, then I think this is a market that can start to move to the downside, possibly rather quickly. Even if we drop down to my projected 0.71 level, that would more than likely be just a correction and what has been a huge move over the last several months. Quite frankly, markets cannot go straight up in the air like this forever and of course the 0.80 level above is a major resistance barrier that extends to the 0.81 handle.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

If we were to break above there, it would be a huge change in the attitude of the market overall, because it would simply become a “buy-and-hold” situation. If that happens, it will be very easy to see how we could go another eight or nine handles. Until then, this is a market that looks like we may be seeing a correction sooner rather than later.

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

Advertisement
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