The Australian dollar has struggled a bit during the trading session to find any footing, but that should not be much of a surprise as we have seen this market struggle for direction as the Americans and the Chinese continue to negotiate a potential trade deal. At this point in time, you should keep in mind that the Australian dollar is highly sensitive to the US/China trade deal because it is such a major producer of commodities that the Chinese use. In other words, Australia is highly levered to China, and will continue to be going into the future. With that, it’s very likely that we will continue to see a lot of back and forth until we can get some type of clarity out of Washington or Beijing. In that sense, you may be waiting quite some time for the move.
AUD/USD Video 28.11.19
Looking at the chart though, you can make an argument for a bit of a “double bottom” down at the 0.67 handle, and the potential of a “higher low” at the 0.6775 level which suddenly seems to be heavily supported. If that is in fact true, that could be somewhat groundbreaking as it could be the beginning of a trend change. If you can marry that up with some type of good announcement out of the trade talks, this could be an explosive turnaround.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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