The Australian dollar has rallied again during the trading session on Wednesday, reaching towards the 200 day EMA yet again. This moving average was broken slightly, but as you can see it has offered a bit of resistance. However, we have formed a bit of a “rounded bottom”, and of course we are at extreme lows when we reach towards the 0.70 level. That is an area that has been important on longer-term charts and should continue to be. If you have been following me here at FX Empire, I have been telling you that the Aussie dollar has a monthly support level based upon that handle. As long as that’s the case, it’s going to be difficult to imagine a situation where we would be shorting just 200 pips above there.
AUD/USD Video 18.04.19
In the meantime, I like the idea of buying pullbacks, especially as they reach towards the 50 day EMA just below painted in red. That is an area that should continue to support this market, as it is so important on the longer-term charts. With that, I am a buyer of dips looking for value but I recognize that the 0.7250 level above will also be resistance. If we can break above there then I think the next target will be 0.75, and by then almost everybody in the world will recognize that it’s a major trend change. I believe that we are in a massive “accumulation phase” when it comes to the Aussie currently.
Please let us know what you think in the comments below