AUD/USD Forecast March 2, 2017, Technical Analysis

The Australian dollar rallied a bit during the day, as we continue to show quite a bit of volatility. The 0.7650 level offered support, and I think we will continue to try to find our way higher. Pay attention to gold, it looks as if it is well supported and that should continue to drive the value of the Australian dollar higher. The 2 markets are highly correlated, and this is a well-known way of trading, paying attention to the currency and the commodity at the same time and picking one of the markets to start buying.
Even if we did breakdown below the 0.7650 handle, the market has plenty of support at the 0.76 level, and the 0.75 handle. There is so much in the way of support underneath that the selling of this pair will be almost impossible to do, and I believe that short-term pullbacks that show signs of support will be buying opportunities. In fact, I have no interest in shorting this market into we break well below the 0.75 level, which I don’t think looks very likely.
Ultimately, I believe that we will reach towards the 0.7750 level over the longer term, perhaps reaching towards the 0.80 level over there. The market should continue to bounce around, but if you are patient enough, the longer-term uptrend should continue to be the way to go, but using a smaller position size than normal might be the way to go as you can deal with the volatility easier and essentially hang on to your trade until you get your pay off. I believe that the 0.80 level continues to be a significant target as looking at the monthly charts it has been an area of contention for decades literally. Because of this, I believe the market will find its way to that area, especially if the gold markets can break higher and reach towards the $1300 level like I believe they will. Selling isn’t even a thought because of all the above-mentioned ideas, and of course all the choppiness that we continue to see in a “risk on” type of scenario worldwide.