The Australian dollar has gone back and forth during the trading session on Tuesday, showing signs of confusion as we reach the top of the recent trading range. At this point, it looks like we are ready to break out but we need to clear the 0.7050 level in order to do so. We are likely to see short-term pullbacks, but those short-term pullbacks should offer value the people are willing to take advantage of.
AUD/USD Video 17.07.19
Keep in mind that the Australian dollar is of course highly sensitive to the US/China trade talks, and of course the global market. The market of course has the 50 day EMA underneath that it’s likely to turn around and rise as we are starting to turn in that direction. At this point in time, if we were to break above the 0.7050 level it’s very likely that we will go looking towards the 0.72 level above. This could be predicated upon the RBA pausing it’s monetary easing. This could also be predicated upon the idea that the US and China are starting to speak in somewhat consolatory terms, or most likely it has a lot to do with the Federal Reserve cutting interest rates.
Either way, it looks as if we are going to continue to see volatility, but I do think that we are ready to reach higher. Once we do, this could be a sudden and quick move as we have been trying to build up this bottoming pattern for some time.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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