The Australian dollar drifted a bit lower during the trading session on Tuesday as we continue to see a bit more weakness. We have recently tested a major downtrend line, so it’s obvious that we are in the midst of trying to change the trend. Whether or not we can is a completely different story but certainly the 0.70 level will attract a significant amount of attention. The 50 day EMA is just below there as well, so that adds more credence to the idea of this level offering buying opportunities.
AUD/USD Video 24.07.19
However, we have not seen anything on the chart compelling enough to start buying at, and quite frankly I don’t like the idea of selling in a market that has been so bullish as of late, not to mention the fact that we have formed a couple of “higher highs”, and of course “higher lows.” With that being the case, I like the idea of buying this market when we get some type of supportive bounce or anything like that and adding to this position if we can get above the 0.7080 level. I think at this point it would be a significant trend change, and all we need at this point is the Federal Reserve becoming more dovish, which is more than likely going to be the case, and perhaps even the US/China trade situation getting a bit better. Eventually, I believe that the countries will get it together, and that should be very bullish for this market.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Silver To Highs and Bullish MA Crossover, Gold bounces back on IMF
- Silver Price Forecast – Silver markets rally on Wednesday
- Gold Price Forecast – Gold markets recover to show signs of strength again on Wednesday
- AUD/USD Price Forecast – Aussie drifts towards support
- U.S. Indices Lower On Earnings, Weak PMI Drags On The EU, Trade Hopes Lift Asia
- Oil Price Fundamental Daily Forecast – EIA Report Expected to Show 4.2M Draw