Australian Dollar Testing 200 Day EMA

The Australian dollar has rallied a bit during the trading session on Wednesday to attempt a break above the 200 Day EMA. We have pulled back so far, and it does suggest that we are going to continue to struggle with not only the 200 Day EMA, but the 0.73 level as well. This is an area that has been resistance multiple times, so this all lines up quite nicely.

AUD/USD Video 03.03.22

Looking at this chart, we are still very much in a downtrend, but it does look as if the Australian dollar is trying everything it can to turn things around. Because of this, we need to keep a close eye on this chart, especially if the market were to break above the 0.73 level and close above there on a daily candlestick. If we do, then it is very likely that the market could go looking towards the 0.75 level above as it is the next major resistance barrier.

On the downside, we have the 50 Day EMA currently sitting near the 0.72 handle and curling towards the price. Because of this, it is very likely that we will continue to see this market squeeze a bit, and therefore inertia is building up. That inertia should give us an opportunity to place a trade soon, but right now I believe you are better off simply waiting for a significant candlestick.

On a breakdown below the 0.72 handle, then I do think that we see the Aussie struggle and go looking towards the 0.70 level underneath, which has been important more than once over the last several months. Anything below there could send the Aussie reeling.

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