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AUD/USD Price Forecast – Aussie dollar continues to levitate

By:
Christopher Lewis
Updated: Feb 1, 2019, 18:18 UTC

The Australian dollar has sat relatively still during the Friday session after the strong jobs number, which for me is a bit telling. We are sitting at a major level, and this tells me that the market is looking for direction.

AUD/USD daily chart, February 04, 2019

The Australian dollar has gone back and forth during the trading session on Friday, after the Americans released a jobs figure of an additional 300,000 for the month of January. That is dollar positive in theory, but it also helps the Australian dollar as it is a risk currency. That being said, the market is sitting directly at the 200 EMA, which of course attracts a lot of attention from systematic trend following trader’s.

AUD/USD Video 04.02.19

Looking at this chart, it’s obvious that the 0.7250 level has been important in the past, and the massive hammer that we see below is probably going to be looked at as the “bottom” in this market. I think short-term pullbacks will offer buying opportunities, especially near the 50 day EMA, which of course is pictured in red. This isn’t to say that we will get the occasional sharp pullback, which I think you can count on in a trend changing event overall. However, it’s obvious that we have seen a lot of buyers come in and push to the upside. Overall, I believe that the pair is simply waiting on some type of resolution to the US/China trade issues. If we can ever get that sorted out, this pair should take off to the upside and it will be one of the first places you should be looking to put money to work. I do not believe in selling this pair anymore, because I do think that we have hit such historical low pricing that it’s going to be difficult to grind any lower longer term.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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