The Australian dollar continues to bounce around between the 50 day EMA and the 200 day EMA, both of which will attract a lot of attention for longer-term traders. That being said, I am impressed by the fact that we continue to see buyers jump into this market and try to lift it. That being said, if we can break above the 200 day EMA it’s likely that we could go to the upside. That being said, I do believe that we are still trying to confirm some type of trend change, and if we can clear above the 0.6930 level, then it will almost certainly send this market looking towards the highs again, that we had seen just a few weeks ago.
AUD/USD Video 22.01.20
Looking at this chart, you can see that there is a lot of confusion but by breaking above the downtrend line, it looks as if we are trying to form some type of trend change. That is always a very noisy scenario and messy trading to say the least. If that’s the case, then what we have seen over the last couple of weeks isn’t necessarily out of the range of normalcy. Think about it for a moment: we have the Australian dollar which is highly sensitive to the US/China trade situation, which has recently shown stability. Having said that, on the other side we have the wildfires in Australia stoking the idea that perhaps the RBA will have to cut interest rates. If they do not, it’s very likely that this pair will finally decide to make its move to the upside for a longer-term move.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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