AUD/USD Price Forecast – Australian dollar pulls back
The Australian dollar has pulled back a bit during the trading session on Wednesday, testing the 50 day EMA. Quite frankly, if we can break down below the hammers from the previous two sessions, we could break down a bit further, something that I’m actually hoping to see. This is because I see so much support near the 0.7050 level that extends all the way down to the 0.68 level that I would view that as potential value in a currency that is currently testing a major bottom on the monthly charts.
AUD/USD Video 28.02.19
Looking at this chart, I do recognize that there is a lot of resistance above, but quite frankly that will give way eventually. This is because Jerome Powell is changing his tune by the day, and eventually the dovish Federal Reserve will weigh upon the greenback. Granted, we need to see some type of recovery and China for the Aussie to rally under normal circumstances, but we also have the potential of gold pulling the Aussie higher as well. This is a correlation that quite frankly has been ignored for some time, but it more than likely suddenly catch everybody’s attention if gold can break above the $1350 level. With this being the case, it’s very likely that the pair will chop around right along with gold as well, as it is pressing major resistance. I do think eventually we rally, and once we break above the 0.7250 level on a daily close, the next target will be 0.75 above.
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