AUD/USD Price Forecast – Australian dollar continues to find buyers on dips

The Australian dollar has rallied quite nicely against the US dollar during trading on Wednesday, as we continue to see a lot of noise below, as the 0.70 level is a massive support level, that extends down to at least the 0.68 handle. Because of this, I like buying the Australian dollar and short-term dips, as it continues to find plenty of value hunters. If we do get some type of conclusion to the US/China trade talks, the Australian dollar will probably be one of the biggest beneficiaries as the Australian economy is very highly levered to how the Chinese economy performs.

AUD/USD Video 04.04.19

Ultimately, this market will break out to the upside given enough time, because quite frankly we’ve had plenty of opportunities to break down. I recognize that the 0.72 level is going to be crucial, as the 200 day EMA is sitting right around that area, but longer-term algorithm will kick in and start buying on a break above that level. At that point, I would anticipate that the market probably goes looking towards the 0.75 handle.

I do believe that if we can break out towards the 0.75 handle, the longer-term trend will have changed completely. At that point, it becomes more of a “buy-and-hold” scenario, and people will start flooding into the Australian dollar as a proxy for China and the potential for global trade picking back up. Beyond that, we have the Federal Reserve willing to sit on the sidelines and be very loose with monetary policy.

Please let us know what you think in the comments below