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Christopher Lewis
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AUD/USD daily chart, April 02, 2019

The Australian dollar gapped higher at the open on Monday, breaking above the 50 day EMA in the process. Over the longer-term, we continue to see buyers in this market on short-term pullbacks, as there is a massive amount of support below at the 0.70 level. With that being the case, I continue to buy this market on short-term pullbacks as the level has been so reliable and is visible on even the monthly time frames. That being the case, I don’t have any interest in shorting this market and I look at these pullbacks as buying opportunities.

AUD/USD Video 02.04.19

Overall, I like the idea of buying and picking up about 20 or 30 pips, and simply collect my profits. That doesn’t mean that we won’t eventually break out, I do believe we will give enough time. However, the attitude of the market is very much one of a “buy on the dips” situation. However, beyond that we have massive resistance above in the form of the 200 day EMA, which currently sits at about the 0.72 level. Remember, this pair is essentially waiting on the results of the US/China trade relations, which of course are still in the back and forth situation, so I think at this point we are simply churning trying to figure out where we are going longer-term. For my money, this looks a lot like a bottoming process, which of course can take quite some time. With that, I’m a buyer looking for value in the Australian dollar when it’s offered.

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