AUD/USD Price Forecast – Australian Dollar Powers Higher AgainThe Australian dollar has rallied towards the 0.70 level on Monday but has slow down as we got to that level. At this point, the market is a bit extended though so although I believe it’s very bullish, you should be cautious about jumping in right here.
The Australian dollar rallied a bit during the trading session on Monday, reaching towards the 0.70 level, a psychologically important figure to say the least. That being said though, although we have had a massive breakout to the upside it’s likely that we need a bit of a pullback in order to find enough value to put money to work. It would not be surprised at all to see that happen over the next couple of days, so now it’s simply a matter of waiting for value to present itself. I would anticipate that the 0.70 level could cause enough resistance to turn things around, perhaps dropping the pair down about 50 pips.
AUD/USD Video 31.12.19
If we can get that 50 PIP drop, then I would be a willing buyer of the Australian dollar as it certainly looks as if we are changing the overall attitude. Furthermore, the 50 day EMA is starting to reach towards the upside and I think it’s only a matter of time before it breaks above the 200 day EMA, forming the “golden cross”, which of course is a figure that a lot of people will pay attention to. At this point, with New Year’s Day being on Wednesday it’s very likely that the market will be very difficult to get excited about, and at this point being patient will be very difficult as that “fear of missing out” comes into play. However, that’s a killer of small retail accounts, and it’s likely that you will get a better price to get involved in. I have no interest in shorting this market.
Please let us know what you think in the comments below