AUD/USD Price Forecast – Australian dollar bounces hard from support

The Aussie dollar rallied a bit during the trading session on Tuesday, bouncing from the 0.7050 level, an area that begins significant support down to the 0.70 level. Beyond that, I also see massive support all the way down to the 0.68 level. We are at an area where a lot of value hunters continue to come back in.
Christopher Lewis
AUD/USD daily chart, February 13, 2019

The Australian dollar has bounced quite nicely during the trading session on Tuesday, as the 0.7050 level has offered support again. I think at this point, we will more than likely break back above the 0.71 handle and continue to go higher. Even if we do break down from here I see massive support all the way down to the 0.70 level, which begins another major support level based upon monthly charts that extends 200 pips lower. In other words, this is a market that simply can’t be sold if for no other reason than the technical support.

AUD/USD Video 13.02.19

We have the Americans and the Chinese meeting this week, and any good news out of that scenario should send the Aussie higher as well. If that’s going to be the case, I would fully anticipate a move to the 0.7250 level again, which would test the 200 day EMA. I think it’s going to be very choppy but right now I think we are building up enough momentum to turn things around and rally again. Keep in mind that the Federal Reserve being soft also helps this pair, and of course Gold has shown a proclivity to fight to the upside also, which also can help the Australian dollar. At this point, and at these levels I have no interest in shorting this market as I see far too much in the way of buying underneath.

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