The AUD/USD has broken higher during the trading session on Friday, breaking above the highs from the last couple of days. That being said, the market now is looking at the 200 day EMA, and if we can clear that on a daily close it’s likely that the Aussie will continue to go much higher. Ultimately, this is a very bullish looking candlestick and it’s likely that we are going to try to reach towards the 0.70 level given enough time, perhaps even the highs again. Keep in mind that the Australian dollar has gotten a bit of a boost due to the US/China trade situation getting better, and that should be reflected in the price.
AUD/USD Video 13.01.20
Pullbacks at this point continue to find support near the 0.6850 level, and ultimately, I think the 50 day EMA is going to hold. Beyond that, there is a downtrend line that now is offering support, so it’s likely that the confluence of buying in that area should continue to keep the market somewhat supported. Furthermore, the jobs number was a little bit of a miss compared to what was anticipated, so the US dollar to take a little bit of a hit anyway. Ultimately, this is a market that I think does continue to go higher, but this is probably a story that will take several sessions, if not weeks to fulfill. If we did break down below the 0.6850 level and the previous downtrend line, then the market probably goes looking towards the 0.68 handle, and then possibly even the 0.67 handle.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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