AUD/USD Price Forecast – Australian dollar rallies

The Australian dollar rallied a bit during the trading session on Friday, reaching towards the 0.71 handle. That’s an area that has caused a bit of resistance, and of course we have the 50 day EMA just above. However, I think there is more than enough reason to believe that we will eventually break above there, based upon the historical action in this market. Beyond that, I see a massive amount of support at the 0.70 level, as it extends down to the 0.68 handle on the monthly charts. With that in mind, I think that we are testing the bottom of the Aussie dollar overall and therefore I have no interest in shorting in this region. I think that pullbacks continue to offer plenty of value, and I think that eventually we will turn around if we can get some type of good news out of the US/China trade situation.

AUD/USD Video 18.03.19

It’s not until we break down below the vital 0.68 handle that I would be a seller of the Aussie dollar, something that I do not see happening anytime soon. In fact, I think we are trying to form a floor for a trend change, and that of course takes quite a bit of time to happen. It’s normally a very messy affair and can be quite erratic at times. With that being the case, I recognize that this isn’t necessarily going to be the easiest market in the world to hang onto, but I certainly think that is what we should be doing.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

More From FXEMPIRE:

• US Stock Market Overview – Tech Shares Continue to Generate Tailwinds

• EUR/USD Weekly Price Forecast – Euro rallies significantly for the week

• Gold Weekly Price Forecast – Gold markets continue to stabilize

• Silver Weekly Price Forecast – Silver markets form neutral candle

• Gold Price Prediction – Gold Rebounds on Soft Manufacturing Output

• Yen Finally Slips After BOJ’s Rate Decision