AUD/USD Price Forecast – Australian dollar pulls back

The Australian dollar pulled back a bit during the trading session on Monday to kick off the week, as the 0.7250 level has offered resistance yet again. This is an area that has a significant confluence of events going on.
Christopher Lewis
AUD/USD daily chart, February 05, 2019

The Australian dollar has pulled back a bit from the 0.7250 level during the day on Monday, as traders came back from the weekend. The 200 day EMA has offered resistance as one would expect, and it looks very likely that the longer-term traders have come in to start selling. The market has a lot of noise underneath though, so I think what we are going to see is a lot of choppiness more than anything else. In fact, this reminds me a lot of the EUR/USD pair, which is essentially “stuck” at this point because the market is trying to turn things around but obviously there’s a lot of noise.

AUD/USD Video 05.02.19

Looking at this chart, I think there is support at the 50 day EMA, pictured in red on the chart, which is turning higher. At this point, I would also pay attention to the gold market because I could give you a bit of a “heads up” as to what’s going on with the Aussie as well. Part of the softness in the Aussie is not only due to the gold market, but also due to concerns in Asia. Remember, the USD/China trade sanctions are a huge driver of what goes on with the Chinese stock market, which by extension can have an effect on the Australian dollar as well. Pullbacks from here should show plenty of support near the 0.71 handle, and then the 0.70 level after that. I believe that the 0.70 level is the beginning of a major support level.

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