AUD/USD Price Forecast – Aussie Dollar Recovers

The Australian dollar initially pulled back during the trading session on Wednesday, but then turned around to show signs of strength again. Ultimately, this is a market that should continue to continue to see more of a grind to the upside but quite frankly this is going to be all about the US/China trade deal or lack of, depending on how you look at things. Things have cooled off a bit between the two countries, so that of course is a good sign and that should help Australia but at the same time there is a lot of unknowns when it comes to how things will actually play out.

AUD/USD Video 19.12.19

In theory, if the Americans and the Chinese start to do more business, that should help Australia which is a major producer of raw materials that the Chinese will be using. We have made a serious a “higher lows”, so it does make sense that we will eventually see this market continue higher and perhaps even break above the 61.8% Fibonacci retracement level. That would open the door to much higher levels, with the 0.71 level being the initial target, and then more of a “buy-and-hold” scenario coming into play.

The Australian dollar has been extraordinarily negative for quite some time, but now that things are currently not between the Americans and the Chinese, this should in theory boost the Australian economy itself. With that being the case, it does look like the Aussie is about ready to make some type of move to the upside but obviously changing a trend takes quite a bit of work.

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