AUD/USD Price Forecast – Australian dollar struggles to hold gains

The Australian dollar initially tried to rally during the trading session on Monday but struggled above the 0.7050 level. At this point, it looks like we could roll over a bit but I think there’s plenty of support at the 0.70 level, which has been massive support on the monthly charts. In general, I believe that there should continue to be buyers underneath but if we do break down below the candle stick from Thursday, it would be a very bearish sign. Regardless though, the support level is roughly 200 pips thick, so even if we break down I have no interest in shorting this market.

AUD/USD Video 30.04.19

Because of this, if the US dollar starts to strengthen against other currencies, I won’t be willing to sell this pair but would rather step to the side as the Aussie has so much in the way of support. However, the US dollar starts to sell off against most currencies, then I believe the Australian dollar will be one of the bigger beneficiaries as we have such a large support area to take advantage of. Obviously, if we were to break down below the 0.68 level, the market probably continues to go much further to the downside, perhaps opening up a” trap door” to extraordinarily low levels. However, that seems to be very unlikely to happen anytime soon, so I still favor the upside but recognize we may need a little bit of a pullback in the short term.

Please let us know what you think in the comments below