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AUD/USD Price Forecast – Australian dollar pulls back

The Australian dollar pulled back a bit during the trading session on Tuesday, breaking significantly below the 50 day EMA. However, I do think there is play support below, pictured by the massive bullish candle from the 0.70 level.

The Australian dollar fell a bit during the trading session on Tuesday, breaking below the 50 day EMA. At this point, I believe that the Australian dollar has plenty of support underneath that though, so I think this is a short-term pullback. The 0.70 level underneath is the beginning of massive support that extends down to the 0.68 handle, and I do think that it is forming a longer-term base. Keep in mind that the Australian dollar is a bit of a proxy for China, which is struggling a bit but if we can get some type of agreement between the Chinese and the Americans, this will be the first place that you will see people jumping into bite. At this point, I do not think we break down below the support level underneath, because quite frankly it is so visible on the weekly and monthly charts.

AUD/USD Video 23.01.19

The US dollar has been strengthening, but with the Federal Reserve sitting on the sidelines and very likely to have a bit more of a dovish stance going into 2019, I think that the upside for the US dollar is somewhat limited. At this point, I look at the bullish candles that sent us higher and recognize that there is a lot of demand under that area, and it should continue to be a major influence on this market. To the upside, I see the 200 day EMA, pictured in black on the chart, as being a major barrier to overcome near the 0.7250 level.

This article was originally posted on FX Empire

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