- As you can see, the Aussie dollar has gone back and forth during the course of the trading session on Friday as we continue to dance around the crucial 200-day EMA.
- The 200-day EMA is an indicator that a lot of people pay close attention to, but the 0.64 level is also an area that has been very important.
- It's been massive resistance for several months now.
When you look back at even longer term charts, you can see it's been very important, multiple times anyway. That being said, if the market were to break down below the bottom of the candlestick from the Thursday session near the 0.6340 level, then we could break down to the 50 day EMA.
Volatility and Choppy Behavior Expected
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All things being equal, this is a market that is likely to continue to see a lot of volatility and choppiness. But now the question is, after that massive shot higher, are we just simply digesting those games or are we finding a place where perhaps we just can't go any further? It's hard to tell really at this point. I think it's literally a 50-50 proposition at this point.
I think ultimately this is a market that is going to be watching the bottom of the candlestick from Thursday and the 0.6450 level above as a guide or boundaries for people, you know, we'll be looking at directionality going forward. As things stand right now, this is a market that is just simply sideways after such a massive move to the upside. This is a situation where we continue to see a lot of noise, mainly due to the tariff situation and of course uncertainty when it comes to where the tariff situation is going to lead us in the future.
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