Australian Dollar Has Rough Ride During the Week

The Australian dollar has gone back and forth during the course of the trading week, as we have seen the Russians invade Ukraine, causing more of a “risk off” type of move around the world, which of course was not good for the Aussie itself. The US dollar of course is a safety currency, so that also offers a certain amount of momentum towards the greenback. That being said, the market is very noisy and therefore I think the 0.73 level above is the most important level that we are looking at currently.

AUD/USD Video 28.02.22

Underneath, the 0.70 level should offer a significant amount of support as it was a major double bottom recently. However, if we were to break down below the 0.70 level, then I could possibly send this market towards the 0.68 level underneath. Breaking below there then opens up a bit of a “trapdoor” for the market, and we could go much lower. This is the same in reverse, if we break above the 0.73 level, because it would kick off a massive “W pattern”, and that particular pattern happens to suggest that we could go looking towards the 0.75 region or so. That obviously is a very significant area as well, as we had pulled back quite drastically from there, so I would pay close attention to it if we did get to the upside.

With everything that is going on around the world, it should not be surprising at all to see a bit of a hesitation in this market, as the headlines will continue to cause a lot of problems, and therefore we could see the occasional flood towards the greenback.

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