AUD/USD Price Forecast – Australian dollar continues to go sideways

The Australian dollar went back and forth during the trading session on Friday as we continue to go sideways. The 0.7250 level above is major resistance as we have seen more than once, and the 200 day EMA is above there, offering even more resistance. Underneath, we have the 50 day EMA offering support, so at this point I think the market is essentially caught between these two major moving averages and waiting to see where to go next. Keep in mind that the Australian dollar is highly sensitive to the Chinese economy, and there are conflicting rumors as to what the US is going to do with trade tariffs, so there is probably major hesitation to put money into the market heading into the weekend.

AUD/USD Video 21.01.19

At this point, if we break down below the 50 day EMA, then I think the market goes lower, perhaps down to the 0.7050 handle. The alternate scenario is we break above the 200 day EMA, which should send this market towards the 0.74 level. In the meantime, I think that the market hesitating in this area makes sense, simply because we have bounced so hard, and of course the headlines are going to be fast and furious at times, causing a lot of fake outs in this pair. Quite frankly, I do think that the area just below the 0.70 level is possibly a longer-term bottom, but these turnarounds quite often are a bit noisy and difficult to handle at times. Because of this, be very cautious but I would wait until we get some type of confirmation by breaking one of the moving averages.

This article was originally posted on FX Empire

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