FXEMPIRE
All

AUD/USD Price Forecast – Australian Dollar Breaks Through Major Psychological Barrier

The Australian dollar has rallied quite nicely during the trading session on New Year’s Eve, breaking through the psychologically significant 0.70 level. At this point, the market is clearly looking very bullish, and a longer-term trend change is currently going on.
Christopher Lewis
AUD/USD Price Forecast - Australian Dollar Breaks Through Major Psychological Barrier

The Australian dollar has broken above the 0.70 level, a large, round, psychologically significant figure. At this point, the market is going to continue to look at this as a breakout, and I believe that the Australian dollar is getting a bit of a boost due to the so-called “Phase 1 deal” that could be coming out of the United States and China. If that’s going to be the case, then I like the idea of the Aussie going much higher as we are at historically cheap levels. We are broken through a major downtrend line, the 200 day EMA, and now are looking at an explosive move.

AUD/USD Video 02.01.20

All things being equal, it looks as if it is a longer-term trend change and I do expect the Australian dollar to be one of the major players for 2020. I have no interest in shorting this market, although I am the first person to recognize and admit that we are a bit overextended in the short term. That short-term overextension should give us a buying opportunity given enough time though once we get that pullback that will be necessary. At this point, the market is very likely to pull back towards the 0.6950 level, before bouncing significantly again and running a bit higher. With this, I like the idea of going long on the first signs of weakness, and I recognize that shorting is all but done at this point. We are about to get the “golden cross” as the 50 day EMA is starting to curl higher and reaching towards the 200 day EMA before that move.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US