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

The Australian dollar rallied a bit during the trading session on Monday, as we pierced the 50 day EMA. This of course is a bullish sign, but ultimately it’s likely that we will continue to see noise coming from the US/China trade relations situation, as Australia is such a huge proxy for the Chinese economy and Chinese demand overall.

AUD/USD Video 19.03.19

Overall, I believe that the 0.70 level will continue to maintain support and push the market to the upside. The 0.70 level extends all the way down to the 0.68 handle, which I see as the absolute bottom of the market based upon weekly charts. Looking at the chart, you can see that the 50 day EMA is just above, but quite frankly we have sliced through it several times so I don’t know that it’s going to be a major issue in the long run.

It’s not until we break down below the 0.68 level that I would be concerned about the Australian dollar in general, and I do not believe that we will break down until we get some type of negative headlines coming out of either China or the United States/China trade situation. The market participants continue to be bullish overall though, even though we have gotten the occasional pullback. I believe at this point we are in the process of a trend changing bottom, so therefore small positions that are added to our probably going to be the best way to build what could be a core position for years.

Please let us know what you think in the comments below