AUD/USD Price Forecast – Aussie rallies to kick off week

The Australian dollar gapped higher to kick off the day as President Trump tweeted 15 minutes before the futures markets open that he was in fact pushing back the March 1 deadline for expanding the tariffs against the Chinese. Ultimately, Australia is thought of as a proxy for China as it supplies with so much of the raw materials for the Chinese industrial machine. As the Chinese stock markets skyrocket, this of course drives the Australian dollar higher as the Chinese yuan isn’t easily traded.

AUD/USD Video 26.02.19

Looking at this chart, we are at the top of a major negative candle, but we are looking towards the 0.7250 level above, which is where the 200 day EMA is currently parts. This is an area where we’ve seen selling pressure in the past, so it makes sense that it would be a nice short-term target. If we can break above that level, then the Australian dollar will continue to go much higher. While the reaction has been positive, it hasn’t necessarily been explosive. With that being the case, I think it is more or less going to be a bit of a grind than anything else.

The 0.70 level underneath is massive support extending all the way down to the 0.68 level, and it appears on the monthly chart. With that being the case, it makes sense that we continue to see a lot of buying pressure in that area, so therefore I don’t think that we will be able to break down below there anytime soon.

Please let us know what you think in the comments below