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Risk management is also critical in this market.
- The AUD/USD saw a dip during Friday’s trading session, but it quickly regained strength as mixed job reports came out in the United States.
- The pair is now threatening to break above recent noise and a couple of inverted hammers. If it manages to do so, it would be a bullish sign.
- However, there’s a lot of resistance above, so it’s uncertain how long the pair can continue to go higher.
The 0.67 level has been a crucial point of support and resistance multiple times, and traders should pay close attention to it. The area that was previously supported should now be resistance, and previous price action suggests that it remains significant. Additionally, the 50-Day EMA has broken down below the 200-Day EMA, which means that longer-term traders may see this as a “sell and stay” position. Any rallies at this point will likely be opportunities to start shortening.
If the pair manages to break above the 0.68 level, there could be a buying opportunity, but it’s likely to be short-term. The global economy is in disarray, and there are concerns about global growth and geopolitical issues. It makes sense that there would be plenty of opportunities for traders to come back into the US dollar.
Given the significant negative candlestick just a couple of days ago, it’s probable that traders will start selling again sooner rather than later. It’s essential to stay cautious and employ the right strategies in this market. Traders can use technical analysis tools such as moving averages, trend lines, and candlestick patterns to identify potential entry and exit points. They can also keep an eye on economic events that could impact the value of the Australian dollar or the US dollar.
Risk management is also critical in this market. Traders should set stop-loss orders to minimize potential losses in case the market turns against them. They should also avoid over-leveraging their trades, which could result in margin calls and wipe out their accounts.
The Australian dollar saw a dip and then regained strength during Friday’s trading session. However, there’s significant resistance above, and the 0.67 level remains a crucial point of support and resistance. Traders should stay cautious, use technical analysis tools, and employ proper risk management strategies to navigate the market’s uncertainty. Quite frankly, volatility is going to pick up, probably not drop.
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