AUD/USD Forecast May 29, 2017, Technical Analysis

The AUD/USD pair fell during the day on Friday, but then bounced significant only to turn around yet again. The Australian dollar has been struggling for some time, and it makes sense that we will continue to see quite a bit of volatility as there is uncertainty when it comes to Chinese demand and credit worthiness as of late. On top of that, we also have the concerns about global growth and demand, and that was upon the Aussie. On the other hand, we have gold markets which are rallying in that sometimes can lift the Aussie. The fact that they are not tells me that the gold markets rallying has more to do with a flight to safety than anything else, and that of course has the US dollar rallied against the Aussie.
The 0.7450 level
I believe that if we can break above the 0.7450 level, the market can then go towards the 0.75 handle. A break above there, then the market is free to go much higher. The longer-term charts a very interesting, because we have formed a massive shooting star, and that would be a very negative sign and I believe at this point the sellers will more than likely win. Alternately, if we do break above the shooting star on the weekly chart, which is essentially the 0.75 handle, then things around quite rapidly. Pay attention the stock markets, and of course commodities in general. If they start to fall, that will put even more pressure on this market and break us down rather significantly.
The choppiness continues to be a mainstay of this market, so you will have to be able to deal with that type of volatility. The Australian dollar continues to be very erratic and when you look at the Aussie in general, it seems to underperform.
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