The Australian dollar initially tried to rally during the trading session on Monday but found enough trouble at the 0.69 level to turn things back around and show extreme weakness. That is also where the 200 day EMA is, and therefore it makes quite a bit of sense that the market will continue to pay attention to it. There are a multitude of reasons why the Australian dollar may or may not move, but one of the biggest drivers will be the Chinese economy and of course whether or not they are going to continue export market.
AUD/USD Video 21.01.20
The Australian dollar continues to suffer at the hands of the wildfires, and of course the idea of the possibility of a rate cut coming out of the RBA. Ultimately though, this is a market that has been trying to find a bit of a bottom so the next couple of days will be crucial. If we can turn around a recapture the 200 day EMA, that would be a very bullish sign. However, if we break down below the 0.68 level, that will kill the idea of this potential trend change and could send the Australian dollar into a bit of a tailspin as we had recently seen such a bullish move, only to see it broken right back down. More likely than not, you are probably better off leaving this pair alone until it make some type of clear move. Simply waiting to see the market make one of these moves is probably the best way going forward.
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This article was originally posted on FX Empire
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