AUD/USD Price Forecast – Australian Dollar Powers Higher

The Australian dollar has rallied again during the trading session on Monday, reaching towards the highs, and of course have broken above the 200 day EMA. The market being able to break above here again is a sign that eventually we will probably break out. At this point, the market is likely to have a lot of focus attached to the US/China trade situation which seems to be relatively stable in the short term. Beyond that, the Chinese have suggested that the tariffs on several products will be brought down, as they are trying to open up their markets. This is not a huge surprise, because in an authoritarian government, the economy is crucial. If that economy starts to rollover, it threatens the very power of the CCP.

AUD/USD Video 24.12.19

Pullbacks at this point in time should continue to be a buying opportunity, as it should be plenty of support at the 0.6850 level, but we could very well just breakout to a fresh new high right away. If we do, then the market is likely to go towards the 0.71 handle. Overall though, the market has not shown any proclivity for a straight shot, so I anticipate that a lot of longer-term traders are starting to accumulate positions down here, looking for a move much higher. Ultimately, this is a market that I don’t have any interest in shorting until we get below the 50 day EMA which is colored in red on the chart. That being said, Tuesday is Christmas eve so volumes will be extraordinarily light.

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