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Christopher Lewis
AUD/USD daily chart, July 23, 2019

The Australian dollar has initially pulled back during the trading session on Monday, but then turned around to rally above the 0.7050 level. We are approaching a major downtrend line and of course the 200 day EMA. We have seen the Aussie show signs of bottoming out, and it’s very likely that we are going to be able to see a significant move to the upside. This doesn’t mean it happens right away, but clearly the Aussie is trying to make its statement.

AUD/USD Video 23.07.19

Looking at the chart, the 0.70 level underneath should be massive support, so as long as we can stay above there it’s likely that we can go much higher. That being said, even longer-term traders will pay attention to the 200 day EMA, and if we break above there it is considered to be a longer-term “buy-and-hold” signal by a lot of trend traders. At this point, we could very easily see the market go to the 0.72 handle, and then the 0.7250 level. Regardless, I don’t have any interest in shorting this market, even if we break down below the 0.70 level, because we have a couple of “higher highs”, as well as “higher lows.” This market continues to be very volatile, but with the Federal Reserve cutting interest rates and of course the gold market taken off to the upside, it makes quite a bit of sense that we continue to see the Aussie benefit. This will become an explosive move to the upside if the US/China situation improves.

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