AUD/USD Forecast September 26, 2017, Technical Analysis

The Australian dollar fell a bit during the day on Monday, but continues to find plenty of noise in this general vicinity. I think that we are going to see a lot of choppiness, and that the 0.80 level above will continue to be very important. I think if we can break above that level, then the market goes much higher. After all, that would be one of several breaks above that psychologically important level, and that of course is a very healthy sign. Gold markets course have an influence on the Aussie dollars well, but right now they been a bit cool. I think that the market has plenty of support near the 0.79 level as well, and although we may have a proclivity to roll over slightly, I think that the volatility is only going to get worse, not better.
Because of this, I’m willing to stay on the sidelines until we get an impulsive daily candle, something that we have not had in a while. The most recent impulsive move has been to the downside, so I think I would believe that move a lot quicker than I would to rally, but at the end of the day you follow the charts, as they lead the way. I think that staying on the sidelines for the next session is probably a good thing to do, as the volatility will certainly be difficult in an area that has been important going back decades. These areas tend to be very noisy, but once they get broken, and either direction for that matter, it leads the larger move. I think that’s what we have seen over the last several days, and I think it will continue to be the case in what is one of the noisier currency pairs right now.

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