AUD/USD Price Forecast – Aussie continues to consolidate

The Australian dollar rallied during the trading session on Thursday, breaking out above the consolidation area initially, but as you can see we have given back some of the gains that had previously been enjoyed. The question now is whether or not we can break out above the top of the candle stick for the Wednesday session, something that I do think will eventually happen. This is especially true considering that economic numbers out of the United States are starting to soften, and that could provide a bit of a boost for gold markets. Obviously, this pair is more than just gold, but it always is a major factor.

AUD/USD Video 14.02.19

Looking at this chart, I think that we will probably continue to be very noisy, but if we can get some type of good news, perhaps an extension on the timeframe of talks between the Americans and the Chinese, that probably since the Australian dollar higher given enough time. On the whole, I believe that we will get a lot of Rocky back-and-forth trading, but eventually we will reach towards the top of the consolidation area on the longer-term chart, which is closer to the 0.7250 level. I think there is a massive amount of support underneath, and therefore I think it’s going to be very difficult to imagine a scenario where this market breaks down for an extended amount of time. In fact, looking at the monthly charts I can make a strong case for this 0.70 level being a major support region on even then timeframe, which of course is something that you need to pay attention to.

Please let us know what you think in the comments below