 Good morning and welcome to the chart of the week video with me David Madden. Today's date is Friday the 12th of March 2021 and the time has just gone 829 GMT. And this week's chart of the week is the Australian dollar versus the US dollar or the Aussie dollar, as it often gets referred to. You can see here from the lows of March last year, it's been a solid move, a solid upward trend. In fact, last month, back in the February, it hit its highest level in three years. So it's very much in a strong upward trend. We have seen a bit of a move to the downside in the past few weeks. And this video discusses the potential price actions that we could see. Are we going to continue in the broader upward trend, or are we going to see a bit of a move to the downside? Now, if you take a look at the price action recently, after it hit its three or high, we've had the lower low, we've had a lower high, we've had a lower low. We're moving higher yet again. We're back above this blue line here at the fifth of the moving average, which bodes well for the broader upward trend. The fifth of the moving average comes into play at zero spot 7,740. While we continue to hold above that metric, it's likely that the broader upward trend is going to continue. And should that be the case, we can then be looking at retesting the zero spot 80 zone. If you do move to the downside, we could find support from the lowest area this week in around zero spot 7621. And the move below that could take us back down towards this area, zero spot 76, down towards the lows seen in early February in a zero spot 7563. Now, it is worth noting, let's look at how much distance we've traveled since early November through to the late February. The answer data went from zero spot 70 up to zero spot 80, so it's been a huge move to the upside. So to be honest, even if you go back down towards the zero spot 74 area, the broader upward trend will still be intact. And while we're talking about zero spot 74, we can see that that zone acted at resistance in late August or early September. It also acted as a zone of consolidation in early December. So even if you have a size of a correction, we could head all the way back potentially back towards zero spot 74 and the broader upward trend will still be intact. Now, why is the Australian dollar gaining so much ground? Well, what's the Australian dollar versus the US dollar gaining so much ground? Well, let's focus on the Australian dollar part of it at the time being. The Australian dollar is very much tied in with the moves in commodity markets. It's a mineral rich country and positive moves in mineral and commodity prices tends to have a positive impact on the Australian dollar. This here is the price of, this is the chart of copper. It's been on an absolute tear recently, not too long ago at the back end of February at its highest level in over nine years. So no coincidence that copper hits its highest level in over nine years, going on 10 years. And the Australian dollar versus the US dollar, it's a three year high. So we can see here that copper hasn't had a move to the downside, but it does appear to be kind of shaking off the recent, you know, the recent negative trend. And should that be the case, we could look to continue in the broader uptrend. If you do see that, that bodes well for further gains with respect to the Australian dollar versus the US dollar. We've talked about the Australian dollar side of it. Let's take a look what's going on on the US dollar side of things. One of the products that we offer here at CMC markets markets is a forex indices where it's similar structure to a stock market index, but it's in its, it's for currencies. So you can find the other products forex indices, take a look at the CMC USD index. We can see what's going on with the US dollar as a whole. So we can see here, the dollar was in this sharp decline for many, many months. In fact, it fell down to a multi-year low, lowest level in over two years in January. But since then, it's been moving higher. We seem to have formed a base around here. In fact, only earlier this week, it has hit a three month high. It has retreated ever so slightly from those three month high. But it seems to me we could be at an important point for the CMC US dollar index. Are we going to have a bit of a pullback before we have another move to the upside and retest the march highs? Are we going to head back up the levels last seen in December or even in towards November? Or is it a case of it is going to drift lower and then retest the lows that we saw back, the lows about January, and also the lows of late February? So if we do continue to remain at a range bound or the bias remains to the downside in the CMC US dollar index, that's likely to can also bold wealth for continued rallies in the Australian dollar versus the US dollar. Conversely, if we do see a break higher in the CMC US dollar index, if we do take out the highs of February and if we head back up, we do start racking up fresh multi month highs on this market, it's likely we could then see further downside pressure on the Aussie dollar versus the US dollar. Now, if you are going to be trading the Aussie dollar, US dollar, or even just any of the major currency pairs today, it is worth noting that at 1330 GMT, half one UK time, the US PPI numbers are going to be posted. Any signs of inflationary pressure at the factory level is likely going to put upward pressure on the US dollar. That's all from this video. Thank you for listening. Have a good weekend.