AUD/USD Price Forecast – Australian dollar pulls back

The Australian dollar pulled back a bit during the trading session on Monday, reaching towards major support underneath. We had seen this major support come into play as the hammer from the Thursday session was so obvious. Beyond that, there is a lot of interest in this area just below.
Christopher Lewis
AUD/USD daily chart, February 12, 2016

The Australian dollar has pulled back a bit during the day on Monday to kick off the week, reaching towards the massive support that we had seen come into play on Thursday. This is of course interesting, because there should be a lot of price action in this general vicinity. If we get that, then we could get a bit of a bounce. However, we could break down and go towards the 0.70 level, which for me is even more supportive. At this point, even though we have seen a lot of negativity lately, the reality is that there is a lot of structural support in this general vicinity.

The Australian dollar breaking below the 0.70 level would of course be very interesting and attract a lot of attention but looking at longer-term charts, I believe that we have a massive amount of support below the 0.70 level that extends down to the 0.68 handle, which shows up on monthly charts which of course will attract a lot of attention in and of itself. Overall, I do believe that we are getting close to the bottom of this pair, and if we can get any type of good news coming out of the US/China trade talks, that will probably be reason enough to expect this market to explode to the upside. Overall, I believe that the value hunters are coming back rather soon, but we may need to build a bit of a base before we get any momentum.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.