AUD/USD Price Forecast – Australian dollar pulls back

The Australian dollar fell during the trading session on Wednesday, as the recent price action has shown just how important the 0.7250 level is. The 200 day EMA is just above there, and of course we have to worry about the US/China trade situation, which is not seemingly going anywhere right now. With that being the case, and the fact that the Chinese economic numbers have been rather soft, I think that the Australian dollar will struggle to hang onto gains.

AUD/USD Video 17.01.19

The 50 day EMA being broken to the downside, which is pictured in red on the chart, then it’s likely that we could go down to the 0.70 level, or something to that effect. I’m not interested in buying this pair at these lofty levels, at least not until we break above the 200 day EMA, pictured in black on the chart, on a daily close. I would be interested in buying at lower levels, but we need to pullback to major support before we see an opportunity to do such. That being the case, I am slightly negative for the Australian dollar, but I’m not expecting some type of major meltdown. I think that we have seen just how important the area between the 0.70 level and the 0.68 level is, as we bounced so significantly from that area. In fact, I think we are trying to form a bit of a base in this market place, but is going to take quite a bit of action and good news to make the market finally break out to the upside for the longer-term.