The Australian dollar initially fell during the week, only to turn around and bounce rather significantly. We have broken slightly above the shooting star from the previous week, which of course is a very bullish turn of events. This suggests that perhaps the Australian dollar can continue to go higher, but I also believe that the there are a lot of things out there that could weigh upon the Australian dollar, not the least of which is the US/China trade war. That will continue to be a major issue, and therefore I think that this rally is probably going to run into a lot of problems above, especially near the 0.75 level if we can continue to even go that high.
AUD/USD Video 19.11.18
I believe at this point the market probably continues to see a lot of confusion, and even though we have recently broken a downtrend line, I believe that it is still going to be very difficult to own the Australian dollar, and that part of what we are looking at is a short covering rally ahead of the G 20 meeting in Argentina. At best, we are probably looking at a framework coming out of that meeting between Xi and Trump, so I believe that the markets will eventually be disappointed. However, I would necessarily short right away, and would wait for some type of exhaustive candle to start shorting on smaller time frames, as I believe we will probably revisit the 0.70 level underneath.