AUD/USD Price Forecast – Australian dollar continues to find support

The Australian dollar initially pulled back a bit during the trading session on Friday, only to turn around and show signs of life. Overall, the market has major support below at the 0.70 level, and that’s an area that I more than willing to buy time and time again. It extends down to the 0.68 level on the monthly charts, so it’s obvious that the longer-term traders are more than willing to jump into this market. The 50 day EMA is just above and it is offering resistance as well.

AUD/USD Video 01.04.19

Longer-term though, the market is likely to continue to find buyers and eventually break out to the upside. I believe that the 200 day EMA, pictured in black on the chart, is your next target if we do break out to the upside, and then the 0.7250 level. Longer-term, if we can get some type of agreement between the United States and China, that could be reason enough for the Australian dollar to go much higher.

As far as breaking down is concerned, it seems very unlikely to happen but if it did occur and we broke down below the 0.68 handle, the market will have changed drastically, and it would probably have something to do with some kind of financial panic. Pay attention to the Gold markets as well, because they can obviously push this market higher as well as the market will react positively to that as well. In general though, I think were in the middle of a larger bottoming pattern.

Please let us know what you think in the comments below