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AUD/USD Price Forecast – Australian dollar grinding higher

By:
Christopher Lewis
Updated: Feb 20, 2019, 16:33 UTC

The Australian dollar has pulled back a bit during the trading session on Wednesday, but it looks as if we are trying to grind to the upside longer-term.

AUD/USD daily chart, February 21, 2019

The Australian dollar has shown signs of strengthening over the last several days, but during the Wednesday session we have a pullback just a little bit to pick up some value. The Australian dollar of course is going to be very sensitive to the US/China trading talks, as Australia is a proxy for China itself. The Australian economy is highly sensitive to what goes on in China, so if we can get some type of resolution in that situation, it’s likely that the Aussie will be one of the main beneficiaries.

AUD/USD Video 21.02.19

Just below, at the 0.70 level there is a massive amount of support on the monthly charts, so I think it’s going to be very difficult to break down below this general vicinity. To the upside, the 0.7250 level should be a bit of a target, and I think that given enough time we will reach there. The 200 day EMA is in that neighborhood, but I think if we can break above there it’s likely that the Aussie will then go to the 0.70 level after that. A soft Federal Reserve may continue to push this market to the upside as well, so ultimately this is a market that I do think has only one direction to go longer-term, but that doesn’t mean that it will be very noisy and difficult in the meantime.

Expect choppiness, but if you can keep your position size small enough, you should be rewarded eventually. With all of this noise out there, it’s not surprising that the Aussie has been struggling over the last several months.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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