AUD/USD Price Forecast – Aussie running into resistance

The Australian dollar has tried to rally towards the 0.7250 level, an area that has important reactions at various times over the last several months. Beyond that, we have the 200 day EMA above that is of course technically and psychologically important. At this point, I believe that the Australian dollar is going to continue to see that area be important. Beyond that, I think that you should also pay attention to the US/China trade, which of course will be crucial. Ultimately, if we can break above that level then obviously it would be very bullish but at this point I think it’s likely that the significant bounce that we have seen is a bit overdone.

AUD/USD Video 15.01.19

Ultimately, this is a market that I think needs to revisit the lows, or at least close to it, because in order for it to be a hard “floor” in this market, people will need to see a bit of confidence which of course will be needed. Ultimately, it looks likely that the market has got ahead of itself, so I think that a pullback makes sense, especially if we get some type of negativity surrounding the trade talks, or perhaps even the stock markets as we enter earnings season in the United States. At this point, I think that we at the very least will need to pullback, even if you are bullish over the longer-term. Overall, I do think that there are plenty of buyers underneath, but we need to pullback in order to offer their value for people to put money to work.