Advertisement
Advertisement

Australian Dollar Continues to Test Same Resistance

By:
Christopher Lewis
Published: Feb 22, 2022, 14:56 UTC

The Australian dollar has rallied a bit during the trading session on Tuesday to reach towards the 0.72 handle yet again.

Australian Dollar Continues to Test Same Resistance

In this article:

The Australian dollar has rallied a bit during the course of the trading session on Tuesday to reach towards the 0.72 handle and even break above it. That being said, this is the same area where we have seen a lot of noise at, so it is not a huge surprise to see whether or not the market is going to continue to offer a bit of resistance. If we break down from here, the market could very well drop back towards the 50 day EMA.

AUD/USD Video 23.02.22

On the other hand, if we break above the recent noisy area, we may have the ability to go looking towards the 200 day EMA above. That of course would be a “risk on” type of situation, but there is a lot of risk out there and it is difficult to see that being able to stick. Obviously, we are most certainly trying to do something like that, but every time we attempt that, we fall. That being said, the resiliency is something that we need to pay attention to, and it is likely that we will continue to see a lot of choppy volatility in the environment that we are finding ourselves in. Ultimately, we have to make a bigger decision, but it certainly looks as if it is going to be very noisy and difficult in the meantime.

If we do break down, the 0.71 level will probably offer a bit of support, so it most certainly is worth paying attention to. The markets will continue to be noisy as long as there is uncertainty, and quite frankly, there is going to be a lot of uncertainty going forward.

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

About the Author

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.

Did you find this article useful?

Advertisement