The Australian dollar rallied a bit during the trading session on Friday, reaching towards the 0.70 level but at this point it looks as if we are to pull back a bit. That makes quite a bit of sense, because we have just broken out, and cleared the 61.8% Fibonacci retracement level. At this point in time it looks like the 200 day EMA will probably start to offer support, and therefore I think that the 0.69 level underneath will be support. I believe that the Australian dollar is going to be one of the currencies the watch for 2020, so therefore I am very interested in buying dips.
AUD/USD Video 30.12.19
The market is starting to react to the US/China trade situation which seems to be getting better and therefore I do think that a put upward pressure on the Aussie going forward. Ultimately, the market is very sensitive to the copper markets as well, which are all so breaking out to the upside. Overall, I do like the Aussie for most of the year and I think that we have recently bottomed out the 0.67 handle. The 0.67 handle was crucial on longer-term charts, so don’t be surprised at all if it ends up being where we turned around for the longer-term. The United States and China should cool off the trade war this year due to the election and of course the fact that the Chinese have been feeling the pinch as well. At this point, the Australian dollar will continue to see strength due to the fact that they supply the Chinese so much in the way of raw materials.
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This article was originally posted on FX Empire
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