AUD/USD Price Forecast – Australian dollar falls

The Australian dollar initially tried to rally during the trading session on Thursday but pulled back to show signs of weakness. Because of this, it’s very likely that we are going to go looking for support underneath, and probably at the same level that we have seen more than once. Because of this, the 0.7050 level should continue to operate as a bit of a “floor” in this market, extending down to the 0.70 level at the very least, and then further down to the 0.68 level due to the monthly chart showing significant support.

AUD/USD Video 01.03.19

At this point, buying the dips continues to work a bit, and that shows that the Australian dollar is in fact trying to form a longer-term bottom. At this point, it’s very likely that we will see buyers come in and try to pick up the Aussie as it is considered to be very cheap just below, and therefore I think that you should keep your upward bias. The recent flash crash that formed in this pair seems to be the absolute bottom from what we’ve seen, although we have a long way to go before we go to the upside.

After all, these trend changing moments tend to take a lot of time, and it’s very likely that will continue to be the case. I simply by on the dips when the Australian dollar gets a bit cheap, and then collect profits about 75 pips later. The 0.7250 level above is resistance and also coincides nicely with the 200 day EMA, so if we can break above that it’s likely that we will continue to go much higher.

Please let us know what you think in the comments below