The Australian dollar has broken down significantly during the Monday session, slicing through the trendline as I record this. However, I would need to see this market break down below the 0.76 level to continue to go lower. I think that we are making a serious attempt to break things down, and if that’s the case I think that we could be seeing a major inflection point in this market.
The Australian dollar has broken down significantly during the trading session on Monday, slicing through an uptrend line that is a rather significant. I think if you can break down below that level, the market probably will break down below the 0.76 handle, and that could send the market down to the 0.75 handle. I believe that short-term bounces could be selling opportunities, but I think that if the market were to break out to the upside, we could see the 0.77 level as a major barrier. I believe that if we can break above that level, then the entirety of the negative momentum could give way. However, breaking below this uptrend line is a major sign of weakness, so I’m going to wait until we get a daily close to decide where we go next. This could be the beginning of something significant, but we will have to see as weekly trendlines tend to be a very messy affair.
If we do break down, the 0.75 level would be the first target, and then below there I think that we could go much lower. We simply must rally significantly to show signs of buying again, and if we do I think it would be a very strong sign as it would show a complete reversal of the momentum, and I think that we are showing signs of the next major move. Be patient, the market should show its clear intentions.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.