AUD/USD Price Forecast – Australian dollar rallies to kick off the week

The Australian dollar initially pulled back on Monday to kick off the trading session and week, but as you can see we turned around to show signs of strength yet again. The Australian dollar of course has been benefiting from a negative attitude with the US dollar, so at this point it’s very likely that the market could continue to try to reach towards the 0.7150 level. That’s an area that has been massive resistance in the short term, but if we can break above there then I think the Aussie is free to go towards the 0.72 handle.

AUD/USD Video 09.04.19

To the downside, we have a lot of support near the 0.7050 level, and a massive support “zone” that extends from 0.70 to the 0.68 level underneath. That area is important on not only the daily chart but also the monthly chart. Monthly charts that show major zones like this are something that should be paid attention to. I have been buying the Australian dollar and short-term dips and collecting 20 or 30 pips when it’s offered. Quite frankly, I think were in the middle of a bottoming pattern, so we need to see something pretty significant to start selling. I believe this is a longer-term pattern, so they are quite often messy and difficult to deal with. However, if you are a longer-term trader these are exactly the type of move that you wish to see. Short-term pullbacks are buying opportunities from what I see, building up for a longer-term core position.

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