AUD analysis 21.01.2020

The Australian dollar fluctuated in a narrow range tilted towards the decline during the Asian session to witness its bounce to the twelfth session in fifteen sessions from its highest since July 23 against the US dollar amid the scarcity of economic data at the beginning of this week by the Australian economy and its American economy the largest Economy in the world and the center of attention of investors to the launch of the events of the World Economic Forum in Davos in Switzerland.

At 05:23 am GMT, the Australian dollar pair declined against the US dollar by 0.16% to 0.6862 levels compared to the opening levels at 0.6873, after the pair achieved its lowest level during the trading session at 0.6857, while achieving the highest at 0.6881.

This was followed by last weekend's economic data that showed the largest Australian trading partner and Asia's largest economy and the second largest economy in the world 6.1% during 2019, despite the trade dispute between Beijing and Washington, which recently witnessed its breakthrough with the signing of US President Donald Trump and Vice President China's State Council Liu is last Wednesday on the first stage of the trade deal in Washington.

In the same context, US President Trump praised last Sunday the partial agreement with China, expressing that the agreement will contribute to reducing customs incentives and open the door for American products such as meat and poultry, in addition to soybeans, rice and other products to enter China, adding that Beijing will do what it can. To emphasize the preference of this agreement, while touching on the fact that Washington has distinguished relations with Beijing at the present time.

U.S. President Trump also stated that the relations between his country and China are better than ever, and that Beijing respects Washington at the present time, and it is reported that Trump noted during the signing of the trade agreement with China that his administration will leave the customs duties imposed on Chinese goods even after the signing of the first stage of the agreement and that Customs duties on Chinese goods will be abolished completely after the second stage of the agreement is signed.

Technical analysis

The Australian dollar versus the US dollar continues to fluctuate around the EMA50 and presses it negatively, on its way to a possible test to support the bullish channel that appears in the picture.

In general, the bullish trend is still likely to remain stable above 0.6800, as breaking this level will press the price to resume the main downside that initially targets 0.6670, while the expected positive target for the suggested bullish wave is at 0.7015.

The expected trading range for today is between 0.6835 support and 0.6910 resistance.

Expected trend for today: bullish.