AUD/USD Price Forecast – Australian dollar pulls back

The Australian dollar pulled back a bit during the trading session on Thursday, as we continue to see a lot of choppiness and back-and-forth trading. Overall, this is a market that is very likely to pull back and find buyers though, as we have been grinding higher for quite some time. The market is very likely to continue to look at the 0.70 level underneath as a massive floor. In fact, you can even see it on the monthly timeframe, and therefore it’s very obvious that the market is continuing to pay attention to that situation.

AUD/USD Video 12.04.19

Beyond that, if the Chinese economy can be boosted by stimulus, that should drive more demand for raw materials coming out of Australia, thereby driving more demand for the Australian dollar. In general, I believe that the market is simply a “Buy on the dips scenario.” With that being the case I have no interest in shorting the Aussie dollar and I do believe that it’s only a matter time before we go looking towards the 200 day EMA which is just above, and then of course the 0.7250 level above there. In general, I like the Aussie dollar, but I also recognize you are going to need to be very patient and holding this currency.

It’s not until we break down below the 0.68 level which I see is the bottom of the overall support underneath that I would be concerned about the Australian dollar. That doesn’t mean that it’s going to be easy and quick, quite frankly this is going to be like watching paint dry but I do think we go higher.

Please let us know what you think in the comments below