As we get closer to the outer edges of the range, it’s possible to place trades with better odds.
- The AUD/USD has been experiencing a lot of noise and hesitation during Monday’s trading session.
- This comes because of the economic uncertainty that continues to linger around the globe.
- As we zoom out a little bit and look at the bigger picture, the market has been bouncing around in a larger consolidation area, and given that we are currently in the middle of it, it’s difficult to anticipate any significant moves in either direction.
It’s essential to note that the 200-Day EMA sits right around the 0.68 level, which is the top of the range, and at the same time, the 0.66 level offers potential support. Therefore, we can expect the market to continue going back and forth as traders try to figure out where we are heading for a longer-term move. At present, the market is at “fair value,” and the ability to be a decent range-bound market is still on the table.
However, it’s crucial to keep in mind that the Australian dollar is still very sensitive to the economic outlook of the world, which is not necessarily bullish. Therefore, it’s essential to pay close attention to global economic trends when trading the Australian dollar. As the situation is so murky around the world, this will continue to see a lot of potential negativities.
Looking at the chart, it’s possible that the market could go to the 0.6950 level, possibly even the 0.70 level if we can break above the 200-Day EMA. On the other hand, if the market turns around and breaks below the 0.66 level, then it’s possible that we could go down to the 0.64 level, possibly even the 0.62 level. However, with the current levels, it’s safe to assume that the market will continue to see a lot of back-and-forth action, and traders must keep their position sizes reasonable.
As we get closer to the outer edges of the range, it’s possible to place trades with better odds. In conclusion, it’s safe to assume that the Australian dollar will continue to experience a lot of noise and hesitation in the coming days and weeks. Therefore, traders must pay close attention to global economic trends, keep their position sizes reasonable, and take advantage of any potential opportunities that present themselves at the outer edges of the range.
