The Australian dollar initially tried to rally during the day on Friday, but then gave back the gains in order to form a less than impressive candlestick. At this point, the market looks likely to see a lot of volatility, and of course move based upon the latest headlines coming out of the US/China trade negotiations, be it through official channels or perhaps through Twitter. That being said, the market continues to see a lot of noise externally, so it’s almost impossible to trade.
AUD/USD Video 02.12.19
If we do continue to drift lower though, then it’s likely that the market will test the 0.67 handle, an area that we have seen a double bottom form. That is a major support level so it will be difficult to imagine that this market breaks down through there. If it does, this market likely will go looking towards the 0.65 level next. On the other hand, if we turn around a break above the 50 day EMA, it’s likely that we then go looking towards the 0.69 level after that. Overall, this is a market that continues to be very noisy, and therefore I don’t really like trading it. However, we could be getting relatively close to the idea of a bottom in this market, and therefore we could be forming a longer-term trade down the road, but at this point it’s very unlikely that trade is forming right this moment. I would be more apt in looking at the potential set up on a weekly timeframe.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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