Australian Dollar Climbs During the Trading Session

Looking at this chart, you can see that we broke above the 50 day EMA, but when I look at this chart, I can also see that there is a significant amount of resistance near the 0.73 level, so in that sense I would be very cautious about getting aggressive. If we can break above the 0.73 level, then it is very likely that we could see this market go much higher, perhaps reaching towards the 0.75 level. Looking at this chart, you can see there is a lot of noisy behavior going on, and quite frankly I think what we are seeing here is the Aussie reacting to the great Thursday morning Asian stocks had as it is quite often used as a proxy for Asia.

AUD/USD Video 21.01.22

If the market were to turn around and break down below the 0.7150 level, then I think we probably have a run down to the 0.70 level just waiting to happen, which makes a certain amount of sense due to the United States dollar has been so strong against European currencies, so if it spreads and Asia this is what we will get. I would anticipate a bit of choppiness, but it is worth noting that the 0.70 level underneath was a major support level and we have bounced quite nicely from there. Unfortunately, when we have this amount of volatility around the world, you need to think more along the lines of a short-term trading environment.

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