The Australian dollar continues to grind higher, after initially falling during the day on Thursday. It now looks as if we are ready to try to make a move towards the 0.73 handle, although it is probably going to be very noisy on the way there. All things being equal the Australian dollar continues to be strong but also has a lot of noise attached to it as well, as the Chinese situation is a bit murky to say the least. The US/China trade relations continue to falter, and that is doing nobody any good at this point. Ultimately, I think that buying the dips will end up being the best way going forward and I think that the 0.70 level will probably make a nice support level for the market in general.
AUD/USD Video 31.07.20
The recent bullish flag that we have just broken out of and now are retesting suggests the 0.73 level, although that does not necessarily mean we need to get there overnight. This is probably a story for a couple of weeks down the road but clearly you cannot short this market. With the Federal Reserve loosening its monetary policy the way it has been doing, it is very difficult to imagine a scenario where you should try to buy the greenback for anything more than a short-term trade, which of course is a great way to lose money. Simply following the trend change will make your life much easier and your trading account much bigger over the longer term.
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This article was originally posted on FX Empire
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