The Australian dollar has gone back and forth during the trading session on Thursday, as we continue to hang around the 50 day EMA. We are sitting just above the previous downtrend line though, so it’s very likely that the buyers will come in and try to pick this market up. If we can break above the 200 day EMA which is pictured in black on the chart, it’s likely that the market will continue to go much higher. Ultimately, this is a market that is highly sensitive to the US/China trade situation and of course risk appetite as well. The jobs number in the United States has a major influence on risk appetite globally.
AUD/USD Video 10.01.20
All things being equal though, it does look like we are trying to find a bit of a trend change, but there are a lot of moving pieces at this point, so don’t be surprised at all if it’s very noisy. Having said that, if we were to break above the 200 day EMA it’s likely that we will then go looking towards the recent highs near the 0.7030 level. We are getting relatively close to the “golden cross”, when the 50 day EMA crosses above the 200 day EMA, a longer-term buy-and-hold signal. This is very bullish for longer-term traders and should attract fresh flows into the marketplace. Ultimately, if we were to make a move below the 0.68 level though, that could change everything in make this a suddenly negative looking market. This market looks as if it is trying to do a bit of a trend change, which is always a very messy affair.
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This article was originally posted on FX Empire
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