Australian Dollar Quiet During Tuesday Trading
The Australian dollar has gone back and forth during the trading session on Tuesday, as we continue to see a lot of questions about risk appetite in general. With that being the case, this is a market that I think is probably going to be difficult to navigate over the next several days. We are waiting for major inflation numbers coming out of the United States, so that of course will affect the greenback itself. Ultimately, this is a market that given enough time will have to make a decision, and even though we have had a nice little bounce, you should keep in mind that we are still very much in a downtrend. Because of this, you need to be cautious with your position size but also recognize the fact that the 0.70 level underneath is a major support level.
AUD/USD Video 09.02.22
To the upside, we have to deal with the 50 day EMA as well as the 0.72 level. If we can break above there, then we could go much higher, but it is going to take a significant amount of momentum to make that happen. Perhaps if the inflation numbers on Thursday come out much lower than anticipated, that could be a catalyst. I would not hold my breath for that though, because quite frankly there are plenty of other concerns out there that could have people running to the greenback anyway. Nonetheless, it looks as if we are at least making an attempt to stabilize.
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