Christopher Lewis
Add to Bookmarks
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.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker