Australian Dollar Pierces 50 Day EMA

The Australian dollar has rallied initially during the trading session on Wednesday but has found the 50 day EMA too much to overcome. That being said, it looks like we are struggling to break down significantly in the short term, so I think given enough time that the market will have to make a decision. At this point time, it looks like there is some support at the 0.71 level, but that is an area that has been sliced through a couple of times, so it does make a certain amount of sense that we would see it cause a bit of hesitation, but it would not be overly surprising if we go looking towards the 0.70 level given enough time. Keep in mind that as a crucial level on the longer-term chart.

AUD/USD Video 17.02.22

To the upside, if we can take out the massive shooting star that formed last week, then perhaps we can try to take out the 200 day EMA. That has a lot of work to get through before we actually have that happen, but that would only add to the conviction of longer-term buying. It obviously would need to see a Federal Reserve getting a bit more dovish, something that is not going to happen in the short term, but I would also point out that the 0.70 level extends down to the 0.68 level as a messy area as well.

Because of this, I think it is going to be difficult for longer-term traders unless of course they can hang on through volatility. That is generally how the Forex markets are right now through most pairs, so that should not be a huge surprise.

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