AUD/USD Price Forecast – Australian dollar flat on MondayThe Australian dollar did very little during the day on Monday, but that’s not a huge surprise considering how bullish the move on Friday was. Overall, the market continues to look bullish in general, but we should also keep in mind that there are external factors that we need to pay attention to.
The Australian dollar did very little during the day on Monday to kick off the week, as we are approaching the vital 200 day EMA. This of course will attract a lot of technical and algorithmic traders, so it builds up a little bit of natural resistance. A pullback from here could make quite a bit of sense, but at this point it would almost certainly be some type of buying opportunity. We have the 50 day EMA underneath the candle stick for Friday and turning higher, so pullbacks will more than likely attract buyers near that level.
AUD/USD Video 16.04.19
Even if we did break down below that level I would not be a seller of the Aussie dollar as it certainly looks as if it is trying to form a bit of a bottom. This might be a longer-term change of trend, so paying attention to this is crucial. Below there, we have massive support at the 0.70 level that is massive support extending all the way down to the 0.68 level on the monthly charts. Ultimately, this is a market that is trying to form a bit of a bottom for a longer-term trend change from what I see and if we can get the US/China trade relations on the right footing, that could drive the Aussie dollar much higher. Remember, China is heavily depended on Australian commodities to fuel their huge industrial and construction engine that has been such a driver of the Chinese economy.
Please let us know what you think in the comments below