- The Aussie dollar has shown itself to be somewhat hesitant near that crucial 0.6550 level that I’ve been talking about.
- The market continues to see a lot of pressure to the upside.
- I think that will somewhat remain the case as there is still hope that the Chinese and the Americans come together for a deal, which was announced by Trump earlier in the session, but it hasn’t been signed yet.
So, we’re waiting to see whether or not it actually comes to fruition, but we are definitely closer. This is huge for Australia, but notice we just got slammed to the downside. So, at this point in time, I am simply waiting to see if we get a daily close above the 0.6550 level and then I would consider going long. Short-term pullbacks could see a move down to the 0.6475 level and breaking down below there could open up the possibility of testing the moving averages below.
More Technicals
Speaking of the moving averages, the 50-day EMA is doing everything it can to cross above the 200-day EMA, which of course is a very bullish sign, and that would kick off what is known as the Golden Cross, something that a lot of longer-term traders really like.
Whether or not that actually ends up being the case, we’ll have to wait and see, but it certainly looks like it’s only a matter of time. Right now, though, this looks like a market that’s just in a bit of a holding pattern, trying to wait and hopefully get the good news at once.
With this being the case, short-term pullbacks more likely than not probably offer short-term buying opportunities as far as most traders are concerned. Because of this, I suspect the Aussie will suddenly explode one day, catching a lot of traders off guard.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.