AUD/USD Price Forecast – Australian dollar pulls back

The Australian dollar has pulled back slightly during the trading session on Tuesday to continue to dance around the 50 day EMA. It’s very likely that we will continue to grind sideways overall, perhaps even drift a bit lower. However, we have Jerome Powell speaking in front of Congress over the next two days so he could try to kill the greenback in the process. If he does, then the Australian dollar could drive towards the 200 day EMA above, which is currently hovering around the significantly resistive 0.7250 level.

AUD/USD Video 27.02.19

Looking at the Australian dollar, I see that the market has massive support underneath that starts at the 0.7050 level and extends all the way down to the 0.68 level, meaning that the market should continue to see plenty of buyers underneath, so buying on the dips should continue to work out quite well for this pair. That will also be especially true considering that the US and China are trying to come to terms on a trade deal.

Remember, Australia is one of the main suppliers of the Chinese, and that of course means that the Australian dollar will make its moves with the Chinese economy and all things related to the Chinese economy. At this point, the market could very well be volatile, but I do think that we are trying to form some type of longer-term bays, especially when you look at the monthly chart and see how important the area just below truly is.

Please let us know what you think in the comments below