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

The 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.
Christopher Lewis
AUD/USD daily chart, February 01, 2019

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.

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