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

The Australian dollar continues to grind sideways just below an important technical figure, so it makes sense that we simply can’t get anywhere. With that being the case, more sideways and listless trading is probably ahead.
Christopher Lewis
AUD/USD daily chart, April 19, 2019

The Australian dollar went back and forth during the trading session on Thursday as we continue to bounce around underneath the 200 day EMA. This is a market that of course is highly sensitive to the US/China situation and China itself, so keep an eye on what’s going on in Asia in order to get an idea as to how the Aussie may perform. Ultimately, this is a market that will more than likely find plenty of reasons to move back and forth over the longer-term, but right now it’s obvious that the market is waiting for some type of catalyst to move things.

AUD/USD Video 19.04.19

The Federal Reserve on the other side of the trade of course is very loose, so that should continue to put a bit of support for the Aussie dollar. Longer-term, I do believe that we are trying to form a bit of a “rounded bottom”, in order to change the overall trend. It’s going to take a lot of work though, and therefore it’s generally accepted that these moves take a lot of momentum and time, so this may be a very difficult to hang onto that trade that longer-term traders certainly seem to be in a bit of an accumulation phase. That’s very good news for the Australian dollar, and if we can break above the 200 day EMA on a daily close that would be the first step forward. Short-term pullbacks should be very well supported and could be thought of as value. However, expecting quick gains might be a bit much.

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