AUD/USD Price Forecast – Australian dollar continues to plow higherThe Australian dollar continues to go higher during the trading session on Thursday as we have broken above a major resistance barrier. The 200 day EMA being broken of course is a bullish sign, but I also recognize that there is a lot of concern out there geopolitical he and economically.
The Australian dollar has rallied during the trading session on Thursday, breaking above the 200 day EMA, and of course the resistance at the 0.7250 level. There is a lot of noise just above, and I do think that the Australian dollar will eventually find its legs longer-term, but I also recognize that there is a lot of concern out there when it comes to the US/China trade relations which has a major influence on the Australian dollar as Australia is so highly levered to the Chinese economy itself.
AUD/USD Video 01.02.19
Gold markets have recently broken out, and that of course offers bullish pressure in the Australian dollar as well. The Federal Reserve being a lot more dovish recently suggests that we will continue to see US dollar weakness, but the Australian dollar is a bit of a special situation as it is a proxy for China. I think at this point, we have the jobs number which will have a massive influence on where we go next, and I believe that the market ultimately will find buyers but the question is whether or not we get a pullback first. I suspect we will probably get a pullback that offers value below, and I believe that the 0.7150 level should be supportive.
The major resistance above is at the 0.75, which I think he is at initial target for the buyers. I don’t think we will be able to get above there easily though, and that would obviously be a major turn of events for the marketplace, leading to a longer-term investment rather than some type of trade. I still believe that the 0.70 level underneath is a massive floor in the market that extends down to the 0.68 handle.