- The Aussie dollar bounced a bit during the trading session on Monday, using the 200-Day EMA to show signs of support.
- All things being equal, this is a technical indicator that a lot of people pay attention to, so it does make a certain amount of sense that we would see traders jump into this market and try to take advantage of this indicator.
- The market has recently been very sideways and its overall action, and the Monday candlestick does suggest that perhaps we are trying to get back to that bit of “balance.”
Technical Analysis
There are few pairs that have bored me more than the Australian dollar/US dollar pair over the last several months. Yes, we rallied a bit previously, but then just sat still. In other words, we just rallied to the top of the larger consolidation area, and therefore it makes a certain amount of sense that we hesitated in that area. However, the fact that we went sideways in a very tight consolidation area afterwards was a real indictment on the fact that we didn’t have anywhere to be. With this being the case, I am expecting this market to be more of the same, meaning that we will just simply bounce around in the same region that we had been in previously. With that, I think you should temper your expectations for any type of big move, but a move to the 0.6650 level would make a certain amount of sense.
Top Forex Brokers
Previously, we had bounce around between the 200-Day EMA, the 50-Day EMA, the 0.66 level, and the area above near the 0.67 level. I think we continue to see a lot of this sideways nonsensical behavior, as there are a lot of back-and-forth potential factors in this market. After all, the Australian dollar is considered to be a “risk on currency”, and of course the Aussie dollar is highly influenced by the commodity markets around the world.
On the other hand, we have the US dollar which is considered to be a “safety currency”, and it is something that we need to be cognizant of any time we trade the greenback. Ultimately, I think this is a market that remains very noisy, and somewhat sideways.
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