The Australian dollar initially fell during the trading session on Wednesday but found enough support near the 50 day EMA to turn things back around and form a bit of a hammer like candlestick. This was mainly due to the fact that there are sources suggesting that perhaps the United States and China are much closer to a trade deal then it appears, even as there are a lot of fireworks in the price. That being said though, the Australian dollar has been trying to recover for some time due to the fact that the US/China trade situation has been getting somewhat better, although not at one time.
AUD/USD Video 05.12.19
At this point, it’s very likely that the market is going to continue to see a lot of volatility, but now it looks likely that we are going to continue to go higher as we have formed a bit of a “higher lows” in this market. All things being equal, it looks as if we are going to go looking towards the 200 day EMA above which is painted in black. If we can break above the 0.70 level, then it’s likely that we are going to continue to see upward pressure in we may have at that point seen the absolute bottom. I do believe that the Australian dollar is trying to form some type of longer-term bottom, but it’s can it take a significant amount of time to make this true. It is going to be choppy but I think at this point the Australian dollar is more or less a “buy on the pullbacks” type of situation.
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This article was originally posted on FX Empire
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