The Australian dollar initially pulled back a bit during the trading session on Tuesday, dipping below the 200 day EMA. However, we have found enough support to turn around and show signs of life again. The shooting star from the previous day being broken to the upside should send the Australian dollar much higher, and with the Americans and the Chinese getting together to sign the “Phase 1 deal” this week, which turns out to be quite a bit more comprehensive than initially thought, it’s likely that the Aussie strengthens as a result.
AUD/USD Video 15.01.20
Dips are still to be bought, and we have recently changed the overall trend. We are right in the midst of trying to make the next surge higher, and if we can end up making a “higher high” on the daily chart, I believe at that point we will see a multi-year move in the Aussie that could send it to much higher levels. It is times like this that the Forex markets offer the most opportunity, for those who are willing to buy and hang on to a position like this. I believe that the market could very well find itself at the 0.75 handle, perhaps even the 0.80 handle over the next couple of years. I am going to take the opportunity to buy dips and add little bits and pieces to my core position, as long as we do not break back below the down trending line that we have recently broken above, pulled back to, and confirmed as support. Refer to the chart attached to this article to see exactly where I am talking about.
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This article was originally posted on FX Empire