AUD/USD Price Forecast – Australian Dollar Continues To Grind SidewaysThe Australian dollar has gone back and forth during the trading session on Monday as traders try to figure out what’s going on with the “Phase 1 deal.”
The Australian dollar initially fell during trading on Monday, but then turned around to rally, only to give back gains again. Ultimately, the Australian dollar looks like it is essentially stuck in this area as there are a lot of questions as to what we are going to do going forward. Ultimately, the US/China trade situation has gotten better in the sense that we are not getting fresh tariffs over this past weekend. However, the path forward isn’t exactly clear. That will continue to weigh upon the Aussie dollar, and it’s likely that the Aussie dollar will show a little bit of lackluster behavior due to that. With that being the case, the market is likely to simply go back and forth, as traders don’t have a lot of faith.
AUD/USD Video 17.12.19
To the upside we have the 200 day EMA which of course attracts a lot of attention so therefore you should be paying attention to how the market reacts to that. With that, the market is likely to find a lot of selling above as that is a large indicator to pay attention to. The 61.8% Fibonacci retracement level is just above there as well, and therefore I believe it’s going to take something rather impressive to finally break out, that doesn’t mean that we won’t, just that it may take some work to get there. Ultimately, this is a market that should continue to see a lot of volatility, as Australia is so sensitive to China. As long as we can stay above the 50 day EMA, it’s likely that the market will continue to build up momentum to eventually break out for a bigger move.
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