AUD/USD Forecast May 4, 2017, Technical Analysis

The Australian dollar absolutely fell apart during the day on Wednesday, as we have fallen an entire handle. The 24-hour exponential moving average has shot down sharply, and the 48-hour moving average has now broken below the 72-hour moving average. In other words, the short-term charts are showing a change in trend yet again. Currently, the 0.7450 area offers quite a bit of interest by the market participants, but I think that we continue to go lower. I would love to sell short-term rallies that show signs of exhaustion, especially near the 0.7475 level. Ultimately, and exhaustive candle is the signal that I’m looking for as we are so oversold in the short term.
No buying
I have no interest whatsoever in buying the Australian dollar as we have rolled over so hard, and of course losing an entire handle in a without much in the way of interruption is a very negative sign. I believe that a fresh, new low since this market looking for the 0.72 level longer term. Pay attention to the gold markets, they obviously have an influence on the Australian dollar going forward, and they are breaking down below the recent support currently. If that’s the case, the $1240 level underneath is the absolute “line in the sand” when it comes to gold as far as I see. If that gets broken to the downside, the Australian dollar falls apart and shoots much lower. Currently, the US dollar seems to be favored by most currency traders in general, and that should continue to put bearish pressure on this market as well. If we managed to break above the 0.750, then I could be convinced of a rally but in the meantime, I don’t think that’s going to happen anytime soon.