The Australian dollar initially pulled back a bit during the trading session on Tuesday, before finding buyers and reaching to the upside. The 0.71 level being broken to the upside allows this market to go reaching towards the 0.72 handle after that. With that being the case, short-term pullbacks should be buying opportunities and it now looks as if the 0.70 level will continue to be very important from a longer-term standpoint.
AUD/USD Video 13.03.19
That is the beginning of a 200 point range of support on monthly charts, and it’s very unlikely that we break down below there. In the meantime, I look at this market is one you should be buying on dips and picking up little bits and pieces every time you get an opportunity. This is a short-term traders market, forming a long-term traders base. This long-term traders base could open the door to a complete trend change, and quite frankly that’s exactly what I expect to see given enough time. If we get some type US/China cooperation, that should be enough to send the Australian dollar much higher.
On the other side of the equation, we have the Federal Reserve looking to stay relatively loose with its monetary policy, so all we need is a bit of good news to send this market much higher. The 200 day EMA, pictured in black on the chart, will be a major barrier to overcome for the buyers. Once they do, this market should take off.
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This article was originally posted on FX Empire