Australian Dollar Continues to Show Resistance in the Same Region

The Australian dollar has initially tried to rally during the session on Monday, but you can see that we have struggled to go higher again, as we are looking at the 0.72 level as an area of resistance. I believe that the area between the 0.72 level and the 0.73 level is rather resistive, so I would not be surprised at all if we pull back from here. That being said, we are also sitting on top of the 50 day EMA, which can offer a certain amount of support due to the fact that it is a major technical indicator. If we were to break down below there, then it is likely that we could continue the overall downtrend.

AUD/USD Video 22.02.22

On the other hand, if we were to turn around a break above the 0.73 level, then it looks like we are going to continue to break to the upside, as it would be a breach of rather significant resistance. Keep in mind that the Australian dollar of course is a very “risk on” type of currency, so a lot of that will come back into the picture as well. After all, the market is likely to continue to see a lot of “risk on/risk off” type of trading, not just in the Australian dollar, but also the other markets in general.

I do think that the one thing that you probably have to pay the most attention to is the fact that the volatility is here for the foreseeable future because of this, you need to keep your position size relatively reasonable, but also have to be very nimble.

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