AUD/USD Price Forecast – Australian dollar gets hammered on Friday
The Australian dollar broke down significantly during the trading session on Friday after the jobs report came out much stronger than anticipated. This had money flowing to the US dollar as people started to worry whether or not the Federal Reserve would cut interest rates are not. The reality is that the Fed will almost certainly do so, so it’s unlikely that this move lower can last for very long. Granted, the candle stick as I record it looks very bearish, but the 50 day EMA will attract a lot of attention. Below there, we have the 0.6950 level which should also be supported, so until we break below that it’s very likely that we will find buyers.
AUD/USD Video 08.07.19
Keep in mind that the volume during the trading session was probably pretty thin, so that may have a bit of an effect as well. Ultimately I will be looking for some type of buying opportunity either at the 50 day EMA or perhaps the 0.6950 level. The shooting star from the Thursday session of course is rather negative, and a break above there could open up the door to much higher pricing, perhaps the 200 day EMA above. The US/China trade talks will continue to be a big driver of where this market goes, so keep that in mind as the Australian dollar is so highly sensitive to that situation. As soon as traders talk themselves into the idea of the Federal Reserve cutting rates anyway, this pair should turn around.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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