AUD/USD Price Forecast – Australian dollar continues to grind higher

The Australian dollar went back and forth during the trading session on Wednesday, reaching down towards the 50 day EMA, which of course attracts a lot of attention and is starting to turn higher. That’s a good sign, but keep in mind that the Australian dollar is very highly sensitive to the US/China trade relations, which of course is a fluid situation. Below there, I see a massive amount of support at the 0.70 level on longer-term charts, including the monthly chart. With that in mind, I like the idea of buying dips in this pair and picking up 20 or possibly even 30 pips. I’m not looking for a home run here but may be a long series of singles to use baseball terminology. (Think ones and sixes in cricket.)

AUD/USD Video 11.04.19

In general, this is a market that I think it will continue to be somewhat weighed down, but as soon as we get some type of agreement between the United States and China, even if it’s a bad one, this market shoot straight up in the air as it should show signs of life in China and quickly, and of course the Federal Reserve is on the sidelines and not interested in trying to tighten its monetary policy. With all that being said, it’s very easy to see a situation where eventually we go looking towards the 0.7250 level, which should be massive resistance. However, once we break above there then I think it becomes a complete trend change.

Please let us know what you think in the comments below