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AUD/USD Price Forecast – Aussie showing strength again

By:
Christopher Lewis
Updated: Mar 11, 2019, 16:57 UTC

The Australian dollar initially pulled back a bit during the trading session on Monday but has found buyers to turn things around and go looking towards the upside. At this point, it’s obvious that we have massive support underneath.

AUD/USD daily chart, March 12, 2019

The Australian dollar initially pulled back during the trading session on Monday but found buyers underneath the turn things around again. We are sitting just above major support levels in the area of 0.70, so it’s very likely that we will continue to find value hunters. The Australian dollar of course is a bit of a proxy for the Chinese economy and the US/China trade relations, so keep that in mind. Overall, this is a market that should continue to find plenty of attention going on right now, as we have so much in the way of headlines involving the trade war.

AUD/USD Video 12.03.19

We also have a housing issue in  Australia, but at the end of the day most people use the Australian currency as a proxy for China more than anything else, so in a roundabout kind of way the internals in Australia are almost a second thought.

Just above, the 0.7090 level is rather resistive, so if we can break above there then it opens the door to the 0.7190 level above which was the previous selling pressure area. Ultimately, this is a market that I like buying on dips, and of course I have been saying that the 0.70 level underneath is the beginning of a 200 point support level based upon monthly time frames. That of course is a major area to pay attention to, so obviously there will be a lot of order flow. I have no interest in shorting the Aussie at these low levels, and I believe it’s only a matter of time before we get yet another buying opportunity.

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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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