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The Aussie Dollar appears to of made another breakout attempt out of its long term downtrend on the weekly chart. Despite a rate cut by the RBA last week sending the cash rate to a historic low of 1.00%, with more expected for the remainder of the year, the AUDUSD actually rose on the rate cut day. It proceeded to move higher during the week, only to fall strongly on Friday on the US jobs number, which created only a small pullback for the weekly chart after the prior breakout of the downtrend. The important question going forward though is whether this breakout move is the start of a bigger move higher, or its just another false breakout signal for traders. Looking at the technicals for the weekly chart, you will notice the 52 week moving average is sloping lower, whilst the price action is trading below the 52 week moving average. In addition the price action for now has not traded back above the 70.30 resistance area, which would signal a confirmed move out of the downtrend if it was to move above 70.30. This means, similar to the false breakout we saw back in March 2019, we have to wait & see what the price action does over the next few weeks to gain a clearer understanding on what’s happening for the AUDUSD.  To even consider being bullish on the Aussie dollar on a medium to long term basis on the weekly chart, we need to see clear higher lows, that consolidate above both 70.30 & 71.70 resistance areas in the coming weeks and months. If we this was to occur it would allow the 52 week moving average to begin to swing around eventually, providing positive momentum signal for a sustained move higher. Since none of the confirming technical’s for a sustained move higher has occurred for now, the odds are in the favor of the bears. So its possible this could be another false breakout, however we would need to see a move back below the downtrend line to confirm this, with an initial target of 68.30 support if this was to occur. Join the Investing & Trading Community At Guruhaven If you enjoyed this review of Aussie Dollar AUD/USD, that was originally posted for members at Guruhaven, you can join the community free to receive regular macro news, trading ideas, original trading content, chart reviews from Crush The Market and the Guruhaven community of traders and investors. Simply visit Guruhaven using referral code: Crush19 by http://guruhaven.com/membership If you would like to take a look at this week newsletter which includes three special guest posts as well as the best posts on Guruhaven covering USD, GLD, SLV, SPX, DXY, TLT and more, simply for the link http://bit.ly/GuruHaven_WNL17 Disclaimer: Please note all information presented here at Crushthemarket.com, Guruhaven weekly newsletter and within the Guruhaven.com website and its community platform are presented for educational purposes only, and does not represent financial advice in any way. If you require financial advice please seek a licensed advisor who can provide these services.
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