Is The Aussie Ready To Break Out?
Forex4you | Jul 16, 2019 08:00AM ET
The Federal Reserve has recently suggested that they were going to cut interest rates, and at this point, it isn’t necessarily a question of whether or not they will during the month of July, but by how much and will there be more? With that in mind, it makes sense that the US dollar is starting to get hit against several other currencies around the world. The Australian dollar, of course, is no different and it could be for a host of reasons.
Gold has recently seen a lot of bullish pressure, and that helps the Australian dollar as Australia is the world’s largest exporter of the yellow metal. Beyond that, the RBA has paused a bit in its monetary easing, and the Chinese economic numbers, although slow historically, aren’t as bad as many feared.
With that being the case I look at the 0.7050 level as a crucial gateway to higher pricing. If we can break above there, that would complete a bit of a bottoming pattern that could send this market looking towards the 0.72 level, possibly the 0.7250 level after that. We have already crossed the 50-day EMA a couple of times now, and it is starting to turn higher. We do have the 200 day EMA above but at this point, it’s probably all academic.
As long as we don’t make a “lower low”, this is a market that looks to me as one that’s ready to turn around, and now we have several reasons to think that the greenback may slump against many other currencies, the Aussie included. With that in mind, I look for the bullish break out to take advantage of. Between now and then it’s simply a waiting game which is typically what Summer tends to be anyway. Dips could also provide bits and pieces of value to build a position from.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.