 Hello and welcome to the chart of the week video with me David Madden today's date is Wednesday the 22nd of August 2018 and the time is just gone 10.05 British summer time This week's chart week is the Australian dollar versus the US dollar I've taken a look at a daily chart on a fairly long-term basis. We can see Essentially since since the third of the year the Australian dollar has been in decline versus the US dollar It's been a classic example of the downward trend a series of higher highs sorry lower lows and lower highs all the way down In fact was only this this day last week The Aussie dollar fell to a slowest level not seen since January 2017 So given an indication of how bearish the recent downward trend has been in and if the wider Downward trend at the Australian dollar versus the US dollar has been in the last number of months Well, we could see is we could see the zero spot 70 to 50 area being retested Being retested and move below last week's low of zero spots 72 20 Could be an indication for further losses. I should we go south of that level? We could be heading back down towards zero spot 71 60 a level not seen since December 2016 It is worth pointing out though that the market has had a bit of a bounce back anytime A market in a downward trend you will see bounce backs from time to time and if you're a trainer what you have to actually to determine is whether this is a bounce back Which fits in with the wider downward trend or whether this actually the market is actually in the process of turning itself around So if we take a few zoom in and look at the price action in recent weeks We could see taking a look this candle here on Wednesday the 15th of August We can see that that was the date at the market printed its lowest level in over 18 months But at the same time we want to see quite a long week So this this thin line here on the candle is the wicked This is known as the wick of the candle and this and the body is the body of the candle As you can see here the wick is far greater in size in the body Which would suggest is there's a bit of a decision and as you know No, the market they managed to get a push higher for a few sessions after that So to determine is this a bounce back in the wider downward trend or is it the sign of a turnaround in the market? Taking a look at the Makti histogram the Makti indicator We can see that as the market was was in decline through the steady increase in negative momentum And now and since that's when the market's been pushing higher There's been a steady decline in negative momentum and the fact that momentum has actually turned positive So as the markets pushing higher we're now seeing an increase of buying pressure So over the time being the pressure in the near term is with buyers And I know to keep an eye for will be this blue line here the 50 moving average which comes to play at a zero spot 73 83 Notice how at least one occasion recently and a couple occasions it came close. It acted as as a resistance And they're not too dis in the not too distant past And if it has acted as resistance in the not too distant past If there's a good possibility it could do so again in the future And if you manage to get a push on higher from beyond the 50 moving average I know to keep an eye for will be this get aligned here at the one of the moving average Which comes into play at zero spot forty zero zero spot seventy four ninety I notice how the one of the moving average back in April did manage to act as As resistant in back then as well So if it's significant back then it's mixed all the more likely it could be significant again in the future also the price area of Of that is also significant zero spot seventy four ninety is in around the zero spot seventy five handle Which as you can see here back in back in May There was a lot of consolidation in around that area If you do manage to head north of the zero spot seventy five area that could be a sign They're actually in for a for the market to push higher and we go beyond zero spot seventy zero spot seventy five We could be heading up toward this red line here the truly moving average at zero spot seventy six thirty four Once again notice how it actually managed to act as resistance back in April also, so There are the levels to keep an eye forward to the upside should the should the near-term bounce back actually be extended I'm actually have the potential to actually to carry on to be a mobile a wire turnaround in the market Now if you are trading of the Australian dollar versus the US dollar it is worth noting that today The US and Chinese governments are going to discuss trade talks that can obviously have an impact on the Aussie dollar See it's given the amount of trade that China does with it with Australia It's also worth remembering that the US dollar has had a naked run in the past few sessions and later today That the Federal Reserve will announce the minutes from the latest meeting So traders are respecting an optimistic Fed update and as possibility We could have rate rise from the phase both in September and December this year. Well, that's all for me this week. Thank you very much