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AUD/USD Price Forecast – Australian dollar rallies again

By:
Christopher Lewis
Updated: Jul 11, 2019, 15:25 UTC

The Aussie dollar rallied again during the trading session on Thursday, breaking above the 50 day EMA early during trading. At this point, it looks as if we are heading towards a major resistance barrier.

AUD/USD

The Australian dollar has rallied quite nicely during the trading session on Thursday again, breaking above the 50 day EMA. By doing so it looks as if the market is trying to break it towards the 0.70 level above, which of course is major in importance as it is a large, round, psychologically significant figure. After that, we have the shooting star from about a week ago that needs to be broken so that we can continue to go to the upside. That extensively means the 0.7050 level, so if we can break above there I think the market really could start to take off to the upside. At this point, the market will continue to be very choppy, but most decidedly bullish at that juncture.

AUD/USD Video 12.07.19

The Australian dollar is in the process of forming a bottoming pattern from what I see, so I do think that longer-term traders will continue to jump in and support it. The 0.68 level underneath is a massive support level, so it’s not until we break down below there that I think we could get a significant downturn. Ultimately, the market continues to look as if the Federal Reserve is becoming the most important factor, although the Australian dollar itself is a little bit different in the fact that it is highly levered to China. Keep in mind that the discussions still go on between the Americans and the Chinese, but we haven’t actually solved anything. If we did, that would send this market straight up in the air.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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