The Australian dollar has rallied a bit during the training session on Monday again, pressing the top of what looks to be a bullish flag. This is one of the more bullish patterns that can form, and now it looks very likely to continue to push this market to the upside. The 50 day EMA underneath has offered quite a bit of support, and now it looks as if we are ready to go higher.
Based upon the height of the bullish flag, the market could then go towards the 1.15 level above. Short-term pullback should continue to offer quite a bit of support, as the 50 day EMA should continue to be important. Underneath there, at the 1.06 level we have the 200 day EMA. With that in mind, there are plenty of reasons to think that the buyers will return.
Keep in mind that the market features two currencies that are highly sensitive to Asia, and with the trade war going on there will probably be a lot of noise. However, Australia has the benefit of being a major exporter of gold, so that does tend to stabilize the policy more than anything else. Beyond that, the Australian economy is much more resilient in both scope and size than the New Zealand economy, so all things being equal when things get a bit dicey from a global standpoint, it makes sense that the market should continue your attire.
It is not until the market breaks below the 200 day EMA that selling is even possible, and at that point one would have to think that there is a complete shift in overall attitude when it comes to the US/China trade situation, or some type of major issue with the Australian dollar itself that would be shown again several different currencies.
Based upon the height of the bullish flag, the market could then go towards the 1.15 level above. Short-term pullback should continue to offer quite a bit of support, as the 50 day EMA should continue to be important. Underneath there, at the 1.06 level we have the 200 day EMA. With that in mind, there are plenty of reasons to think that the buyers will return.
Keep in mind that the market features two currencies that are highly sensitive to Asia, and with the trade war going on there will probably be a lot of noise. However, Australia has the benefit of being a major exporter of gold, so that does tend to stabilize the policy more than anything else. Beyond that, the Australian economy is much more resilient in both scope and size than the New Zealand economy, so all things being equal when things get a bit dicey from a global standpoint, it makes sense that the market should continue your attire.
It is not until the market breaks below the 200 day EMA that selling is even possible, and at that point one would have to think that there is a complete shift in overall attitude when it comes to the US/China trade situation, or some type of major issue with the Australian dollar itself that would be shown again several different currencies.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.