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The Aussie initially attempted to rally during Friday’s trading session, but then retreated slightly to fall back into the previous consolidation. This is an area in which the markets have been rebounding for over a week, as the Aussie dollar is on the verge of a bigger move. One thing to keep in mind is that many traders pay close attention that Australia is trying to destroy its own economy. After all, you get what you ask for if you ask for it long enough. Locking down the economy isn’t good for the currency or anything, so that said, it’s no big surprise that the Aussie has struggled the way it has.
AUD / USD Video 02.08.21
On the upside, the market will more than likely be struggling at the 0.75 level. The 0.75 level is a large, round, and psychologically significant number, and therefore, it is very likely that we will see people react. Additionally, we also have the 200-day EMA just above it, with the 50-day EMA trying to break through it and forming a bit of a barrier in itself.
If we fall below the 0.73 level it is likely that the market will turn to the 0.70 level below which is a huge number on the longer term charts. If there is more “risk-free movement” in the global economy, then it only makes perfect sense that we see that movement taking place in this pair as well as other commodity-related currencies.
For an overview of all of today’s economic events, check out our economic calendar.
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