Yahoo Finance AUD/USD Price Forecast – Australian dollar finds support and major EMA
The Australian dollar initially pulled back a bit during the trading session on Thursday, dipping slightly below the 50 day EMA. However, we bounced slightly, and I think this is indicative of what we are going to see, a slow and gentle grind lower. This isn’t necessarily an indictment on the Australian dollar rather than an indictment on the US/China trade relations which seem to be going nowhere. With that in mind, it will continue to affect the Australian economy as they are such a valued trading partner with the Chinese.
AUD/USD Video 18.01.19
The 0.7250 level above is resistance, sitting just below the 200 day EMA. Because of this, I think that the market will struggle to go higher and I do look at rallies as potential selling opportunities. That being said I do not think that we are going to get anything akin to a meltdown. I believe that the 0.70 level underneath is going to continue to be important, and therefore I think it would be very supportive going forward. I also recognize that there is a lot of support extending all the way down to the 0.68 handle, meaning that we may have ended up putting out the bottom for the market. If we did break down below the flash crash that we recently had, that would be an extraordinarily negative sign for this pair, perhaps sending the Aussie down to the 0.65 handle. All things being equal though, I believe that we are going to see a bit of back and forth in these few handles.
This article was originally posted on FX Empire
