AUD/USD Price Forecast – Australian dollar sinksThe Australian dollar fell a bit during the trading session on Wednesday, cracking the 0.7050 level for the first time in a while. However, there is even more support under there.
Although the candle stick for the Wednesday session was rather negative, the reality is that there is even more support waiting for the Australian dollar underneath. The 0.70 level is a major support on longer-term charts, including the monthly timeframe. I think that support extends down to the 0.68 handle, and that should continue to attract a lot of attention. It would take something rather special to break down through this level, which is probably some type of relation to a break down in the US/China trade talks. At this point, that is just about the only thing that I see that could bring this market much lower.
AUD/USD Video 07.03.19
For some time now, I have been playing the bounce in the Australian dollar, and although this was a bit of a negative turn of events, the reality is that the sellers have a lot of work to do to prove themselves and take over the entire process. That being said, if we get some type of good news out of the China trade negotiations, that will be like rocket fuel for the Aussie, and should send the market looking towards the 200 day EMA which is roughly 0.7250, an area that is previous resistance.
Looking at the chart, I think finding value is probably going to be the best way to trade the market. I don’t know that we are going to take off in the short term, but eventually this could end up being a cyclical bottom for the Aussie as it has been in the past. That being said, be prepared to play “small ball” in the meantime.
Please let us know what you think in the comments below