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AUD/USD Price Forecast – Australian dollar continues to stretch higher

Christopher Lewis
The Aussie dollar rallied a bit during the trading session on Monday, reaching towards the shooting star that formed last week. This shows the importance of the 0.7050 level, an area that has turned the market around again. However, we are reaching towards that level in a push to break out.

The Australian dollar has rallied a bit during the trading session on Monday, reaching towards the vital 0.7050 level. That’s an area that has shown itself to be important but as you can see the lows that we make in this chart continue to rise, and it seems as if there is only a matter of time before we break out to the upside. The Australian dollar of course will continue to be influenced by the US/China trade negotiations, or at least that this point in time the lack of negative headlines.

AUD/USD Video 16.07.19

On the other side of the equation you have the Federal Reserve, which of course is looking to cut interest rates but quite frankly it’s probably only a matter time before the Aussie takes off to the upside. Short-term pullbacks should continue to attract plenty of buyers, with the 0.70 level being an obvious level of interest due to the fact that it is a large, round, psychologically significant figure. A bounce from that level is very likely, but even if we did break down below there it’s likely that the 0.69 level would also offer massive support.

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Ultimately, I do believe that this trend is starting to change, as the Federal Reserve changing its overall attitude will eventually overwhelm the market. All things being equal, it seems to be only a matter of time before we break out to the upside and go looking towards the 0.7250 level.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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