AUD/USD Price Forecast – Australian Dollar Pulling BackThe Australian dollar pulled back just a bit during the trading session on Thursday, and quite frankly that should not be a huge surprise considering that we had gotten a bit overextended. At this point though, it’s clear that we are trying to change the overall trend.
The Australian dollar pulled back just a bit during the trading session on Thursday, showing signs of exhaustion near the 0.70 handle as you would expect. This is a large, round, psychologically significant figure so there will be a lot of interest in this area. However, the market has broken above the 200 day EMA recently, and of course the major downtrend line. Furthermore, it looks as if the 50 day EMA is going to try to cross the 200 day EMA and form the so-called “golden cross.” This is when longer-term traders start to look at this as a bullish market. At this point, I’m looking for a pullback as an opportunity to pick up the Aussie “on the cheap.”
AUD/USD Video 03.01.20
In a perfect world, I would get the opportunity to buy this near the 0.6950 level. In that area, I think that there should be plenty of support as there is also horizontal resistance that had been broken there. There are so many things working in favor of the Australian dollar in that area that I think it makes perfect sense to be a buyer and that vicinity. However, I recognize that we could continue going higher and simply break out to the upside. If we do make a fresh, new high, then it’s likely that the market is probably going to go looking towards the 0.7225 handle over the longer term. Remember that this pair is highly sensitive to the US/China trade talks, so keep in mind those headlines will come into play occasionally.
Please let us know what you think in the comments below