- As you can see, the Australian dollar has fallen a little bit during the trading session here on Tuesday as we continue to bounce around the crucial 0.6350 level. This is an area that I think has been important more than once, and therefore you need to watch it very closely.
- That being said, I also believe that this is a market that given enough time will have to make a bigger decision. After all, we have a scenario where traders are trying to sort out risk appetite, and of course, whatever's going on in the bond markets.
Noisy Trading Will Continue
Because of this, I think you will continue to see a lot of noise and a lot of volatility. But I think there is a little bit of a consolidation area between the 0.6450 level and the 0.63 level as being a major scenario. If we were to break down below the 0.62 level, it's likely that this market could go down to the 0.62 level. On the other hand, if we break above the 0.6450 level, then the 200-day EMA is also an area that could cause some issues. That being said, I am watching this very closely because quite frankly, all it's going to take is a little bit of fear to throw this market right back down to the downside. We are still very much in a downtrend, although it's probably worth noting that we had broken out of a bit of a channel.
So now the question is, can we turn things around? We're a long way from the overall trend being completely changed. But we are starting to show signs of the Australian dollar at least putting up a fight. And that is something worth paying close attention to. So, at this point, I think I still remain somewhat neutral.
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