AUD/USD Price Forecast – Australian dollar ralliesThe Australian dollar rallied a bit during the trading session on Friday but gave back some of the gains as we approach the vital 0.71 handle. This is an area that will continue to be noisy overall, but I see a massive amount of support underneath that should continue to be a major factor in this market.
The Australian dollar rallied a bit during the trading session on Friday, reaching towards the 0.71 handle. That’s an area that has caused a bit of resistance, and of course we have the 50 day EMA just above. However, I think there is more than enough reason to believe that we will eventually break above there, based upon the historical action in this market. Beyond that, I see a massive amount of support at the 0.70 level, as it extends down to the 0.68 handle on the monthly charts. With that in mind, I think that we are testing the bottom of the Aussie dollar overall and therefore I have no interest in shorting in this region. I think that pullbacks continue to offer plenty of value, and I think that eventually we will turn around if we can get some type of good news out of the US/China trade situation.
AUD/USD Video 18.03.19
It’s not until we break down below the vital 0.68 handle that I would be a seller of the Aussie dollar, something that I do not see happening anytime soon. In fact, I think we are trying to form a floor for a trend change, and that of course takes quite a bit of time to happen. It’s normally a very messy affair and can be quite erratic at times. With that being the case, I recognize that this isn’t necessarily going to be the easiest market in the world to hang onto, but I certainly think that is what we should be doing.
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