The Australian dollar went back and forth during the trading session on Thursday as we continue to bounce around underneath the 200 day EMA. This is a market that of course is highly sensitive to the US/China situation and China itself, so keep an eye on what’s going on in Asia in order to get an idea as to how the Aussie may perform. Ultimately, this is a market that will more than likely find plenty of reasons to move back and forth over the longer-term, but right now it’s obvious that the market is waiting for some type of catalyst to move things.
AUD/USD Video 19.04.19
The Federal Reserve on the other side of the trade of course is very loose, so that should continue to put a bit of support for the Aussie dollar. Longer-term, I do believe that we are trying to form a bit of a “rounded bottom”, in order to change the overall trend. It’s going to take a lot of work though, and therefore it’s generally accepted that these moves take a lot of momentum and time, so this may be a very difficult to hang onto that trade that longer-term traders certainly seem to be in a bit of an accumulation phase. That’s very good news for the Australian dollar, and if we can break above the 200 day EMA on a daily close that would be the first step forward. Short-term pullbacks should be very well supported and could be thought of as value. However, expecting quick gains might be a bit much.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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