AUD/USD Price Forecast – Australian dollar continues to consolidate

The Australian dollar continues to find buyers underneath, as the 0.7050 level has offered quite a bit of support. Below there, we have a massive support level on the monthly charts that should come into play as well, so therefore I think it’s only a matter of time before we rally towards the 0.7250 level above which has been massive resistance and of course features the 200 day EMA currently. That was where the RBA had some less than flattering words for the Australian economy and send this market much lower. You’ll notice that we stopped directly at this level and have not been able to sell off much further than 0.7055 since that statement.

AUD/USD Video 18.02.19

That to me says there is a lot of demand for the Aussie below, and that eventually we will break out to the upside. Once we do, then I think the 0.7250 level will be tested, and it’s very possible that we may break out from there. If we can do that then the next target will be the 0.75 level. Underneath, I see a massive support level on the monthly chart that extends from 0.70 down to the 0.68 handle. In other words, this is a pair that is almost impossible to sell right now as I think most of the negativity has been priced into the market. While there are a lot of headlines out there that will continue to throw the Australian dollar round, it is extraordinarily cheap at these levels from a historical standpoint.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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