AUD/USD Price Forecast – Australian Dollar Continues To Show Strength

The Australian dollar has broken higher during the trading session on Thursday, as we continue to show strength based upon the market hanging above the 200 day EMA for the last four days again.
Christopher Lewis
AUD/USD Price Forecast - Australian Dollar Continues To Show Strength

The Australian dollar has rallied a bit during the trading session on Thursday, as we have cleared the highs of the last several candlesticks. By doing so, the market looks as if it is ready to go much higher and it is probably only a matter of time before we reach the highs again. By doing so, it would confirm a major trend change, and that the Australian dollar should continue to go much higher. This makes sense, because the Americans and the Chinese have at least cooled off tensions when it comes to the trade war, and with the election coming up in November, it’s very likely that there won’t be an escalation in the trade war between now and then. If that’s going to be the case, it should be welcome home for the Chinese economy which relies heavily upon Australian commodities, hints the connection.

AUD/USD Video 17.01.20

At this point, the market looks very likely to continue reaching towards the 0.70 level but if we were to break out to the upside than the next target will be 0.72, perhaps even 0.75 over the longer term. To the downside, there is a significant amount of support at the 50 day EMA, but even more important support at the 0.68 handle. If we can stay above that level, then we have the possibility of having a longer-term trend change to the upside. Until we do break down below there, I still have a long bias, but recognize that patience will be one of the biggest prerequisites for trading the Australian dollar has trend changes tend to be slow and messy.

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
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.
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.