Yahoo Finance AUD/USD Price Forecast – Australian dollar rallies again
The Australian dollar has rallied a bit during the trading session on Monday, reaching above the 50 day EMA which is the first bullish sign, and I think the fact that we are going to continue to go higher is becoming a bit more evident. The 200 day EMA above is massive resistance, and coincides quite nicely with the 0.7250 level, an area that has caused significant resistance in the past. Remember, the Australian dollar is a proxy for China, and if we can get the US/China situation under control, that should send the Aussie higher in my estimation.
AUD/USD Video 19.02.19
I see the 0.7050 level underneath as significant support, as we have seen a lot of reaction to that area. Beyond that, the 0.70 level underneath is massive support, extending down to the 0.68 level on the longer-term charts. In fact, I believe that is essentially the “floor” in the Australian dollar that should continue to be respected. Quite frankly, it would take some type of implosion of the US/China trade relations to break down below there in my estimation. Granted, the RBA has changed its attitude as of late, but quite frankly people will ignore Australia, and pay more attention to China when it comes to this pair. Beyond that, the Federal Reserve looks very likely to try to do everything it can to soften the greenback. I believe in buying dips, but I also recognize that there will be the occasional pullback.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
