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AUD/USD Price Forecast – Australian dollar pulls back to major support

Christopher Lewis

The Australian dollar broke out during the trading session on Thursday, breaking above the 0.7050 level. Not only that, we closed at the very high of the candle stick, which of course is a very bullish sign as well. We have pulled back during the trading session on Friday, reaching towards the 0.7050 level. It has held as support so far, and that is a good sign that the previous resistance barrier is now going to be an area of support. This is classic technical analysis, and on top of this with the Federal Reserve in the background looking to cut interest rates, it makes sense that this pair will continue to go higher.

AUD/USD Video 22.07.19

Ultimately, Gold markets rallying tens the lift the Australian dollar as well, so it makes quite a bit of sense that we continue to go higher based upon a feedback loop that includes the Federal Reserve interest rate cuts, and of course Gold rallying as a result. If we get any type of positive movement between the Americans and the Chinese, that could also offer a bit of a boost to the Australian dollar as well. The 200 day EMA is just above, which of course is resistance but if we can break above there it’s very likely that we continue to go much higher over the longer-term. Ultimately, I believe that this break out is the beginning of a major trend change.

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This article was originally posted on FX Empire