The Australian dollar has been all over the place during the trading session on Wednesday again, as we have fallen to test the previous downtrend line but bounced significantly from that level. If we can break above the top of the candlestick for the trading session on Wednesday, then it could show that the Aussie dollar is ready to break to the upside. The 200 day EMA above of course is going to cause some issues but we have already broken through it a couple of time so one would have to think that it isn’t as potent as it has been in the past. In fact, it looks as if the market is trying to recover and change its course.
AUD/USD Video 23.01.20
All things being equal, if we are trying to change the trend, this is always a very messy affair and that’s what this chart looks like to me. That doesn’t mean that we can’t go lower, obviously we can, but at the end of the day it certainly looks as if the Australian dollar is still willing to fight to the upside and with the US and China calming down the trade war, the idea is that perhaps the Australians will sell more commodities to mainland China. The alternate scenario of course is that there has been a lot of economic damage due to the wildfires in Australia, but it should also be noted that the fire situation is temporary, and not long term. Over the longer term, the US/China situation should be much more important.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price Forecast – Stock Markets Continue To Break Higher
- GBP/USD Price Forecast – British Pound Explodes To The Upside
- Crude Oil Slides Below $58 – More Losses Ahead?
- USD/JPY Price Forecast – US Dollar Wilts Against Japanese Yen
- Japan Lowers Capex Forecast as Economy Remains Sluggish
- Natural Gas Price Forecast – Natural Gas Markets Gap Higher