Continues to See Downward Pressure

It’s worth noting that the next significant support level is closer to the 0.67 level, which has been essential several times in the past. 

• The AUD/USD experienced a small rally during Thursday’s trading session but continues to remain close to a significant support level.
• The market initially moved to the outside but has since experienced considerable volatility around the 0.6850 level, which is a minor resistance barrier.
• The 200-Day EMA is also hovering around the same area, which could come into play. As a result, the market may struggle to move higher, and short-term rallies may fade, indicating potential volatility.

Advertisement

It’s worth noting that the next significant support level is closer to the 0.67 level, which has been essential several times in the past. If the Australian dollar falls below this level, it could result in even more selling pressure, which would be challenging to overcome.

The Australian dollar is highly sensitive to the global economy and everything that’s happening worldwide. Australia is highly leveraged to China, making it logical that there would be a lot of back-and-forth movement as people try to assess the reopening of the Chinese economy. However, there are concerns about whether the rest of the world will follow suit, which could ultimately harm China and, in turn, Australia.

If the Australian dollar breaks above the moving averages around the 0.69 level, there is a possibility it could move up to the 0.70 level. Many people would pay attention to the 0.70 level as it is a large, round, psychologically significant figure. However, there is considerable downward pressure on the market, and the US dollar is showing signs of gaining momentum, indicating that selling rallies may be the best strategy at this point.

In conclusion, the Australian dollar remains close to a significant support level, and the market may experience considerable volatility in the short term. There is a possibility that the currency could move higher, but the downward pressure on the market is strong, and the US dollar is gaining momentum. The Australian dollar is highly sensitive to the global economy and China’s performance, which could impact its future movements. As a result, selling rallies may be the best strategy at this time. Nonetheless, keep in mind that the Forex markets have been extraordinarily volatile lately, so you need to keep an eye on your positioning size since sudden spikes in the market seem to be more the norm these days than a rarity.