AUD/USD Price Forecast – Australian dollar continues to draft

The Australian dollar initially tried to rally during the day on Thursday but found enough resistance at the 50 day EMA to roll over again. Quite frankly, this is good news because we have seen so much in the way of support underneath at the 0.70 level that it has become a reasonably reliable trade. In fact, that level extends down to the 0.68 level for signs of support, that shows up on even though monthly timeframe. Because of that, it’s very likely that we will continue to see a lot of fighting in that area.

AUD/USD Video 29.03.19

The best way I have found to trade the Australian dollar as of late has been to buy dips and collects small profits. The market will continue to offer these small trades more than anything else until we get some type of clarity when it comes to the US/China trade relations. After all, the Australian’s provide a massive amount of hard commodities for the Chinese economy, so obviously it has a bit of a knock on effect here. If we can stay above the 0.70 level, then it becomes an obvious set up. However, if we can break above the 0.7250 level someday, then I think we start the beginning of a longer-term uptrend. At this moment, I have absolutely no interest in shorting the Aussie, at least not until we would get down below the 0.68 handle, something that I do not see happening anytime soon. With that in mind, patience will be needed but you should be able to pick up 20 or 30 pips on each of these dips.

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