The Australian dollar has rallied a bit during the trading session on Thursday as we are reaching towards the vital 0.7050 level. That’s an area that continues to offer significant resistance, but if we were to break above there, more specifically close above there on a daily candle stick, the market should continue to go higher. The 200 day EMA would be the next target, but quite frankly I think it probably won’t play a major role.
AUD/USD Video 19.07.19
Short-term pullbacks should continue to be buying opportunities and it looks as if the 0.70 level underneath is going to be support. That’s an area that of course attracts a lot of attention due to the big figure, but ultimately we should also take a look at the neutral candle stick from the session on Wednesday, showing signs of stability. Ultimately, this is a market that goes higher, and therefore it looks as if we could finally make the breakout that I’ve been talking about for some time. Once we do, this will be the beginning of a major trend change for what I see.
The Federal Reserve is working against the value of the greenback, so don’t forget that. If they are going to cut interest rates, it makes sense that Gold will rally, and that of course helps the Aussie dollar as well as the shrinking US dollar in general. Ultimately, this is a market that looks like it is ready to go higher, it’s just a matter of when.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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