The Australian dollar has spent the better part of the week rallying, but still cannot break above the 0.70 level. This is an area that will be worth watching, because between there and the 0.71 handle there is a massive barrier. Breaking that barrier would be an extraordinarily bullish sign and could open up a longer-term “buy-and-hold” scenario. We have seen a massive rally but at this point the Aussie needs to prove itself.
The market looks to be overly cautious in general once we get closer to the 0.70 level, so I do not necessarily expect that we are simply going to slice through it. However, the fact that we formed a couple of shooting stars previously and are now closing towards the top of them does tell me that there is a stubbornness to the bullish attitude.
AUD/USD Video 06.07.20
To the downside, if we were to turn around and breakdown below the 0.68 level then we could drop towards the 0.6675 handle, possibly even lower than that. This is a market that needs to make a decision relatively soon but once we break out of this little box, I have drawn on the chart, it should be a longer-term move just waiting to happen, and therefore open up the possibility of bigger and longer-term positions. Right now, we are simply killing time in trying to figure out whether or not we are going to retain bullish momentum, or if the rally is over and we break back down. This is simply going to be a matter of news flow at this point.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Silver Price Daily Forecast – Silver Continues To Trade Near $18.00
- Natural Gas Weekly Price Forecast – Natural Gas Markets Form Strong Candle
- GBP/USD Weekly Price Forecast – British Pound Has Positive Week Again
- EUR/USD Mid-Session Technical Analysis for July 3, 2020
- Gold Weekly Price Forecast – Gold Markets Form Neutral Candle
- Crude Oil Price Forecast – Crude Oil Markets Pressing Resistance