The Australian door pulled back a bit during the trading session on Monday, showing signs of weakness. All things being equal though we have the 50 day EMA underneath, which is a major support level based upon technical analysis. At this point, the buyers continue to come back in and pick this market up. That being said, the 200 day EMA above is going to continue to offer issues as well, so it is and as if we will suddenly take off. Unfortunately, the Australian dollar is highly levered to the US/China trade war and that is going to continue to be an issue in the short term.
AUD/USD Video 10.12.19
Longer-term, this looks as if it is a market trying to break out to the upside, as we have recently made a bit of a “double bottom” down at the 0.67 handle and now have made a “higher low” near the 0.6750 level. Whether or not we can hold that is an open question but if we were to hold that area and continue going higher, it could in fact be the very beginning of the turnaround. Remember, markets do tend to take forever to change trends, and it’s not uncommon at all for to be a couple of months. Regardless, looks very choppy and therefore I think it’s likely that we will continue to see buyers on dips but if we were to break down below the 0.6750 level, the 0.67 level will be tested again. Breaking down below there would be horrific for the Australian dollar but it seems very unlikely this point.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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