The Australian dollar has taken off to the upside during the trading session on Monday, reaching towards the 50 day EMA by the time New York opened. With that being the case, it looks as if we are trying to make a “higher level”, something that I had warned could happen. I believe you have plenty of time to get involved in this pair though, because quite frankly even if we have already seen the bottom, that means that we have a long way to go to the top.
AUD/USD Video 03.12.19
Unfortunately, the Australian dollar is going to be highly influenced by the US/China trade situation, so as long as that’s up in the air, there is going to be a bit of an acre around the neck of the Aussie itself. Having said that, if we can get a daily close above the 200 day EMA which is currently about 110 pips above pricing, then a lot of longer-term money will start to jump been as well. The RBA looks to be loose with its monetary policy, so this certainly has all to do with China and nothing to do with Australia.
The 0.67 level has been supportive enough to form a bit of a “double bottom” and looks to be crucial on longer-term charts as well. It is because of this that I am entertaining the idea of taking a longer term position to the upside here, but obviously you can pick and choose your entry point, perhaps building a larger “core position” over time. Right now, I am simply observing and seeing how this plays out, but I will keep you abreast as to what I’m doing here at FX Empire.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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