AUD/USD daily chart, May 01, 2019

AUD/USD Price Forecast – Australian dollar pulls back slightly

The Australian dollar went back and forth during the trading session on Tuesday, as we continue to see a lot of interest near the 0.7050 level. At this point, the one thing that I am paying attention to is the fact that there is so much in the way of support near the 0.70 level underneath that extends at least 200 pips. With that, this is a pair that I can only go long and have no interest in shorting. That’s not to say that I just jump in and start buying though, it comes down to what the US dollar is doing.

AUD/USD Video 01.05.19

If the US dollar is strong, then I will simply leave this pair alone. However, if the US dollar starts to sell off, the Australian dollar makes a lot of sense as we have a clear support barrier just below. With that in mind, I am a believer of the Australian dollar going forward, but I also recognize that we have a lot of work to do. If we can get some type of resolution to the whole Chinese/American thing, that could help as well, but holding your breath for that seems a bit dangerous at this point.

All things being equal, I do believe that the Australian dollar is in the process of trying to form a bottom. These tend to take a long time, so patients will be needed to the upside. As far as selling is concerned, I’m not even considering it until we break down below the 0.68 level, something that seems very difficult to do.

Please let us know what you think in the comments below