Australian dollar (A6H26) March futures present a buying opportunity with more price strength.

See on the daily bar chart of the Australian dollar futures for March that prices are rising and have just reached the high of the contract. Also see at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator is in a bullish position as the MACD line is above the red trigger line and both lines are trending higher. The bulls have the solid short-term technical advantage.

Fundamentally, the US Federal Reserve’s easier monetary policy is bullish on the Australian dollar and bearish on the greenback. In addition, Australia’s economy is highly dependent on commodity exports, which have been in greater demand recently.

A March AUD move above chart resistance at the .6729 contract high would become a buying opportunity. The upside price target would be .6950 or higher. Technical support, for which to place a protective sell stop just below, is seen at .6625.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my personal account. My goal is to point you to potential business opportunities. However, it is up to you to: (1) decide when and whether to initiate trades and (2) determine the size of the trades you may initiate. Any trade I speak of is hypothetical in nature.

Here’s what the Commodity Futures Trading Commission (CFTC) has to say about futures trading (and I agree 100%):

Commodity futures and options trading is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before investing money in futures or options contracts, you should consider your financial experience, financial goals and resources, and know how much you can afford to lose beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations when entering into such contracts. You should understand your risk exposure and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker must provide.

As of the date of publication, Jim Wyckoff had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com