AUD/USD Price Forecast – Australian dollar falls hardThe Australian dollar has fallen a bit during the trading session on Tuesday, as we continue to see a lot of noise in this pair. However, the reality of this market is that we have a massive support level underneath.
The Australian dollar fell significantly during the trading session on Tuesday, as we continue to reach down towards the 0.7050 level. Underneath there, the 0.70 level is the beginning of massive support that should continue to have a major influence on where we go next. In fact, that support level continues to be something that we can notice on monthly charts, so that shows just how important that this area is to the entire market.
AUD/USD Video 03.04.19
At this point, I still continue to look at this market as one that I buy on dips. That being said, you can’t expect huge moves, at least not in the meantime. After all, the Australian dollar is highly sensitive to the Chinese economy, so in other words it is going to be very reactive to what goes on between the US/China trade relations, and whether or not we can make any movement there. Beyond that, we also have the Federal Reserve and the RBA jumping into the mix with whether or not they are raising rates. We know that the Federal Reserve isn’t, and the RBA is very likely to follow that path. In other words, this won’t have much in the way of interest rate differential expectations to move the market. It’s going to be all about China, so pay attention to those headlines, but at this point the play has been the following:
Simply buy the Australian dollar on short-term dips, picking up 20 pips or so on short-term charts. There’s no need to fight what the market is offering.
Please let us know what you think in the comments below