The Australian dollar initially tried to rally during the trading session on Wednesday but gave back the gains in order to show signs of lackluster trading. At this point, the market looks very likely to continue simply grinding overall, but as we approach the 50 day EMA we are starting to see some signs of stability. With that in mind, it’s very likely that we could turn right back around in the short term. Whether or not we can pick up any momentum is a completely different conversation, because quite frankly I think the Australian dollar is difficult to trade right now because of all of the nonsense between Trump and the Chinese.
AUD/USD Video 14.11.19
Looking at this chart, we are probably going to bounce a bit, but I wouldn’t expect much. At this point, it’s very likely that the market will just chop around back and forth based upon the latest headline or algorithm. Quite frankly, I would stay away from the Australian dollar and the time being although on the first person to suggest that it’s probably more likely to find buyers than sellers longer-term, just because we are at historically cheap levels. That doesn’t mean that you should be buying, it’s just an observation. The 200 day EMA above being broken on a daily close could send this market much higher but we need some type of good catalyst to make that happen. Right now, it just simply doesn’t exist. With that, short-term back-and-forth range bound trading systems probably perform the best.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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