AUD/USD Price Forecast – Australian dollar continues to levitate

The Australian dollar fell slightly during the trading session on Thursday but continues to find support near the 0.71 handle. This is an area that has been important a couple of times, and it now looks as if we are probably going to turn around again.
Christopher Lewis
AUD/USD daily chart, February 08, 2019

The Australian dollar fell a bit during the trading session on Thursday, reaching towards the 0.71 handle. That’s an area that has offered support previously, as well as resistance. Because of this, I do think that the Australian dollar is trying to bottom out a bit, perhaps trying to reach towards the 0.7250 level above. The 200 day EMA coincides with that level as well, which of course should make it rather resistive. The massive negative candle from the previous session is a difficult thing to overcome, but when we look at the longer-term charts it’s obvious that we are just above major support.

AUD/USD Video 08.02.19

I believe the area below the 0.70 level is the beginning of a 200 pip level of massive support. Because of this, I think it’s only a matter time before we find buyers coming back into this market to push things higher. Ultimately, I think we then go to the 0.75 level after long enough. Overall, I do like the idea of picking up a small position and trading this range overall as there are plenty of reasons to think that the softening Federal Reserve is going to continue to punish the US dollar. Beyond that, if the US/Chinese trade talks can produce something concrete next week, this market will shoot straight through the roof. I still believe that pullbacks are buying opportunities, and ultimately there are plenty of value hunters out there to make this a possibility going forward.

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

Top Promotions

Top Brokers

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