The Australian dollar fell hard during the trading session on Tuesday, breaking down to the gap, showing extreme negativity. Quite frankly at this point I would be hesitant to buy this market, at least after what we have seen over the last 24 hours or so. I do believe that there is massive support underneath at the 0.68 level though, so I would be much more interested in buying a supportive daily candle in that range. If we were to break down below there, it would signal an extremely negative sign when it comes to the US/China trade relations, and let’s face it we aren’t too far from that happening. I think this pair is going to simply be far too dangerous to put a lot of money into right now.
AUD/USD Video 22.05.19
Don’t get me wrong, I do think we are trying to search for the bottom, but I don’t know that we have found it quite yet. I’m not a seller, at least not until we break down below the 0.68 level, as it is the bottom of the 200 PIP support range that I see on longer-term charts. With that being the case, I believe that this area is going to be tricky to navigate. I do think that the 0.68 level will cause a certain amount of support though, so certainly I believe there might be an opportunity soon. However, I will be basing my trade decisions off the daily candle stick and therefore will remain very patient.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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