 Good morning and welcome to the chart of a week video with me David Madden Today's date is Friday the 20th of December 2019, and the time has just gone 914 GMT and this week's chart of the week is the Australian dollar versus the US dollar or Aussie dollar as is referred to the markets We can see here of the wider term view throughout the year Aussie dollar has been in a solid downward trend But we can see that whenever the market Drop below zero spot six seven that was low as zero spot six six seventy one this entire zone here acted as fairly decent support The market really can really kind of struggle to kind of make a size would break below this area and in this area first of all to be a fairly fairly decent area of support and The market is actually kind of in the process of turning around notice how We have been brought even pushing higher since early October now granted the highs that we saw in early November and A bit of a December I read around the same area so we can actually kind of break higher highs But we have seen Higher lows and the market is pushing up higher along here So we could be a fairly important potentially important point on the Aussie dollar could be the point where the markets finally turning around We found a base here couldn't it couldn't drive any lower and they were slowly starting to see the market try to push higher So we could be coming up to a fairly significant zone in the near term I should be breaking both that zone we could they've been looking potentially Recouping some of the losses that were endured throughout 2019. So if you take a look at this price action here This zone here. This red line is the 30 moving average that comes into play in in around zero spot 6905 we can see in a few occasions throughout the year Notably just north of here here and here there there abouts the the 30 moving average acts as a fair decent resistance on number of occasions And the metric is active as the very decent resistance in the past It makes it more likely if he was at resistance resistance in the future, although there are no guarantees It is worth all remembering that in the middle of the month the The the market did manage to pierce above that metric But didn't that but actually clode well below that line again So if you draw a line kind of broadly speaking on highs of early December on the highs of earlier of November You get this zone here, which comes to the play in around zero spot 69 18 there there abouts So that entire kind of area Of around gonna say between zero spot at 69 15 and zero spot 69 29 there there abouts that area could potentially look at a 30 35 5 Pipped range could be a very significant area. So we do have a size of break above that. I could put some cores For a dirty a fairly decent move to the upside this formation that we're seeing here as the possibility of being a triangle formation But as obviously the key point is it would need to have a decent break above this top line here in around zero spot 69 29 now when it comes to It comes to kind of obtaining price targets from triangles if it is actually triangle What you do is you measure the base of it So if you look at the loads here between zero spot 66 71 and this is called the highest here zero spot 69 29 That is a gap of 258 pips So if this is a triangle and we do have a fairly size of break above this line here We can then project that upwards that 250 a point gap upwards to tend to the seek out a potential profit target to the upside And if that is the case, we could be looking at our targetting 71 87 should be I should be very decent move to the upside so that we obviously you know a Target potentially months down the line seeing as it's taking obviously months for this kind of bottom bottom to form And it's been thinking months for it. It's push higher So could be you know months of now three months six months now We could be like up heading up towards the kind of 71 87 regions there They're about obviously in the near term the kind of big psychology number is 70. We'll have to pass first and foremost Now if you are gonna be trading the Australian dollar US dollar It is worth keep an eye what's going on on the dollar index as a whole So this here is a chart of the dollar index throughout 2019. We can see here that I had a very good run But to the bulk of the year really since October onwards We've had a lower low a lower high and another lower low So if we get the dollar index Manages to take off the lows of early December or sort of mid December that could be a fairly significant sign I wish you're gonna have to see a broader sell-off across US dollar as a whole and if that is the case I will kind of tie in nicely with the view that they were seeing an upward move in the Australian dollar versus the US dollar And lastly if you are gonna be trading the Australian dollar US dollar today, please keep an eye for Important economic reports from the US at 13 30 GMT. We have US GDP. We also have US courts PCE reading Just let you know this is going to be my last video of 2019 So I wish you happy Christmas and a happy new year. I'll be back in 2021 20. Thank you