Yahoo Finance AUD/USD Price Forecast – Australian dollar finds support
The Australian dollar has found support after initially falling on Friday, and the beloved 0.7050 support level. This is an area that has been very important for some time now, and it now looks as if we are buying the Australian dollar going into the weekend, in perhaps expectations of some type of good news coming out of the US/China trade talks. There have been “smoke signals” out there suggesting that perhaps there is some progress being made, and that of course will be good for the Australian dollar overall.
AUD/USD Video 25.02.19
To the upside, I see the 200 day EMA is hanging around the 0.7250 level, an area that has been significant resistance in the past. Because of this, I find it very interesting that those two variables are lighting up, and with that being the case I think that will be our destination. If we were to get some type of actual trade deal, that could change everything and send this market much higher. Conversely, if we were to get extraordinarily negative news out of the negotiations, then we could find ourselves falling rather hard. That being said, there is a massive amount of support underneath that extends down to the 0.68 level on the monthly chart, so I do think that the real risk is to the upside at this point. Quite frankly, we have had a lot of bad news coming out of the situation in the past that did not kill off the Aussie. I think the smart money is starting to pick it up at these cheaper levels.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
