Aussie dollar continuing to find resistance against Singapore doThe Australian dollar initially tried to rally during the day on Friday but continues to run into a lot of pressure against the Singapore dollar. This is a proxy for risk in Asia, so it makes quite a bit of sense that we will roll over from here as there are a lot of concerns when it comes to economic growth in Asia as the US/China trade situation continues to cause major ripple effects around the world.
Looking at the chart, you can see the 50 day EMA is just above, and we have formed several wicks just above the 0.95 handle. It’s very likely that we could go down here and reach towards the 0.9250 level. Ultimately, it’s going to be more of a grind but I can also make an argument that if we were to break above the 0.9440 level, then it would show an attempt to break above the 50 day EMA. A move above there has the market looking towards the 0.95 handle.
Simply put, this is a great proxy for risk appetite, so I think that you should pay attention to stock markets. If stock markets start to roll over in a bit of a “risk off” move, that should put downward pressure on this pair and send it much lower. After all, we are in a downtrend anyways so it makes quite a bit of sense that we will more than likely see that move. It’s going to be a grind, but it makes more sense that we go down than up. This pair doesn’t move very quickly so you need to be patient to wait for your profits to appear. Sudden moves aren’t typical with this pair, so keep that in mind if you are putting money to work.
