The Australian dollar initially tried to rally during the trading session on Friday but then broke down to reach towards the bottom of the hammer from the previous session. At this point, the 0.6850 and it will more than likely show signs of support. At this point, the 50 day EMA is starting to curl higher and should offer quite a bit of support near the 0.68 level as well. At this point, it’s likely that we will find support sooner rather than later, but keep in mind that the market is going to be held hostage to the trade war headlines out there between the United States and China.
AUD/USD Video 11.11.19
On the other hand, if we were to turn higher and go above the 200 day EMA we would not only clear the most recent resistance, but we would clear the 61.8% Fibonacci retracement level. Beyond that, the market breaking above the 200 day EMA would show a major trend change, and at this point the market is likely to go towards the 100% Fibonacci retracement level which is closer to the 0.71 level.
One of the biggest problems this pair will continue to have is that it is so sensitive to the trade war and at this point it’s anybody’s guess as the where we go next. Even though there has been some progress made, the reality is that there is a long way to go before it becomes settled.
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This article was originally posted on FX Empire
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