AUDUSD is testing the 200dma as we are in breakout territory.

With the US and China looking more than likely a “Phase 1” deal will be done before the end of the year, the AUDUSD is reaching higher now testing the 200dma at the .6910 level as we have broken a downtrend line that has held the pair since the end of 2018. This could allow for a further squeeze towards the .7037 level which is the 161% extension of the last move lower in November/December.

Steve Voulgaridis