The Australian dollar fell a bit during the trading session on Friday, but it does look as if there is a certain amount of buying pressure underneath that should help longer term. Beyond that, we also have the major support level that starts at the 0.70 level and extends down to the 0.68 level. This is a market that continues to show signs of resiliency in that area, as that region shows support on the monthly timeframe. That’s obviously something that you don’t see every day, so I’ve been taking advantage of pullbacks at this point as we approach the 0.70 level.
AUD/USD Video 25.03.19
With that being said, I am going to be patient and wait for a little bit more of a pullback to start buying. I don’t have any interest in trying to short the Aussie down to that level, because quite frankly there are too many reasons to believe that we will continue to see resiliency, and of course the Federal Reserve has stepped away from anything remotely close to being hawkish. With that in mind, it’s difficult to imagine a scenario where it’s going to be easy for the US dollar to gain against higher yielding currencies, especially in emerging markets.
And that’s the key to this pair, emerging markets. Australia is essentially the “supply depot” for much of Asia, so therefore as it goes so will Australia. If we can get any type of bump in the Chinese economy from stimulus, that should also help the Aussie. In the meantime, I continue to buy short-term pullbacks.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- EUR/USD Weekly Price Forecast – Euro rolled over as Germany continues to underwhelm
- Crude Oil Price Update – Close Under $58.82 Produces Potentially Bearish Closing Price Reversal Top
- USD/CAD Daily Price Forecast – US Dollar To Retain Positive Price Action
- Crude Oil Weekly Price Forecast – Crude oil markets form reversal signal
- GBP/JPY Weekly Price Forecast – British pound pulls back for the week
- S&P 500 Price Forecast – Stock markets crater on Friday