The Australian dollar has initially pulled back during trading on Tuesday, but then found enough support at previous support and resistance to turn around and slam into the top of the breakdown candle from if you sessions ago. Ultimately, this is a market that continues to be very noisy, as it is highly levered to the US/China trade talks. Australia unfortunately is being influence from the outside, so if there is trade optimism, then the Australian dollar will continue to go higher. However, all it takes is one bad Tweet from Donald Trump, and the Australian dollar gets hit.
AUD/USD Video 20.11.19
It looks as if we are trying to form some type of “higher low” at this point, so it will take a lot of strength by the US dollar to break this market down, so it’s likely the buyers will continue to buy on the dips as they occur, but overall I suspect that the market will eventually try to grind its way towards the 200 day EMA above at the 0.6950 level. At this point, it’s going to continue to be a very noisy and almost impossible market to trade for any significant length of time, so I suspect unless you are a longer-term “buy-and-hold” type of trader, the Australian dollar probably isn’t going to be for you. With that being said, longer-term traders are probably setting up for a multi-year trade. If you are a short-term trader, you may have the ability to ride out a lot of volatility.
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This article was originally posted on FX Empire
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