AUD/USD Forecast June 7, 2017, Technical Analysis

The AUD/USD pair broke out during the session on Tuesday, clearing the 0.75 level. Now that we have done that, the market has turned around to test that area and show signs of support, and because of this I am bullish of this market and believe that we will eventually grind higher. The GDP numbers coming out of Australia will also have an effect on this market today, but ultimately it looks as if the buyers are in control. I believe that the consolidation just below the 0.75 level should offer significant support, so I believe that buying on the dips will probably be a feasible strategy going forward. I believe that the support runs all the way down to the 0.7450 level and therefore it’s not until we break down below there that I would consider selling.
Gold markets have an influence
Gold markets are trying to break out during the day, so that of course will have an influence on the Australian dollars well. As gold climbs, and potentially breaks above the $1300 level, that would be very bullish for the Aussie also, and could send us to much higher levels. It appears that the market has suddenly shifted its focus, as it was the New Zealand dollar that was outperforming, but it’s cousin the Australian dollar seems to be favored now. I don’t have any interest in shorting this market, least not until we break down below the 0.7450 level, and that doesn’t look likely in the short term. Even though we may be volatile, I do believe that the overall positive momentum continues over the next several sessions. Granted, we did get an impulsive move over the last couple of days, so it may be a little slower going forward.