AUD/USD Price Forecast – Australian dollar trying to break out

The 0.7050 level has been important more than once in this pair, offering significant support. It has shown it to be supportive yet again, and during the day on Wednesday we trying to break out of the little consolidation area that we have been forming. I think at this point it’s likely that we will continue to form a bit of a base in this area as it is the bottom of the longer-term consolidation area that we have been bouncing around in, and then it’s also the beginning of massive support underneath.

AUD/USD Video 14.02.19

Looking at the longer-term charts, the 0.70 level is the beginning of a 200 point range of buying pressure. At this point, I think that the market will continue to respect this area, an area that I see crucial on the longer-term monthly charts. At this point, if gold rises which it should, I think that will help the Australian dollar. Beyond that, if the US/China trade relations can continue to improve, at least in rhetoric – this could be reason enough for the Australian dollar to rally. Quite frankly, I think the Australian dollar has bottomed due to that massive flash crash that we had, and I think that the longer-term outlook for this market is much higher. I suspect that the 0.7250 level will be tested, but it may take a couple of weeks to get there. I have no interest in shorting and believe that small short-term pullbacks are buying opportunities.

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This article was originally posted on FX Empire

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