AUD/USD Price Forecast – Australian dollar drift lower on WednesdayThe Australian dollar tried to rally during the trading session on Wednesday but failed and rolled over again to test a major round figure. Ultimately, this is a market that is trying to break out to the upside but doesn’t quite have the momentum.
The Australian dollar initially tried to rally during the trading session on Wednesday, but then rolled over to reach down towards the 0.70 level. This is an area that has been resistance in the past, so now it looks likely that we could find support in this area. The 50 day EMA, which is pictured in red on the chart, is curling to the upside, perhaps reaching towards price over the next couple of sessions. To the upside, the 0.7050 level is resistance, but if we can close above it on a daily chart then this pair will continue to go higher.
AUD/USD Video 18.07.19
When I look at this chart, I recognize that there is a significant amount of resistance at the 0.7050 level, so if we were to break above there it’s likely that we could spring to the upside rather quickly. You can think of this much like a beach ball that being held underwater, if and when we break out, the inertia that’s built up will send this pair much higher. The Australian dollar of course will be highly sensitive to the US/China situation, and of course global growth. I believe at this point though, one of the main drivers will be the Federal Reserve looking to cut interest rates. That should continue to offer a bit of support, as we are starting to see the US dollar soften up against many other currencies around the world. With that, I believe in buying dips but most certainly would be a huge buyer of a break out.