AUD/USD Price Forecast – Australian dollar grinds higher

The Australian dollar has rallied slightly during the trading session on Tuesday as we are now above the 50 day EMA. However, we have broken above that EMA more than once so I don’t think of this as a major event. This simply shows that we are still in the same type of attitude, with the 0.70 level underneath offering significant support, while the 0.7250 level above offer significant resistance. I think that the best way to play this market is still the same, simply buying dips as they appear.

AUD/USD Video 27.03.19

The 0.70 level extends support all the way down to the 0.68 handle, and even shows up on the monthly charts. Because of that, it’s very likely that the market will continue to find buyers underneath so that’s why I’m waiting for opportunities to pick up value in the Aussie dollar. Keep in mind that the Chinese have been stimulating their domestic economy, which has a direct effect on the Australian economy. If China can stimulate itself back into prosperity, that should translate to a higher Australian dollar as Chinese firms will be buying copper and other metals from the Australians.

At this point, it looks as if the 0.7250 level is going to be a major barrier to overcome, which will take a lot of work and momentum. If that’s going to be the case, then you need to take profits relatively quick. This is more or less going to be a short-term traders type of environment until we can break out and above.

Please let us know what you think in the comments below