AUD/USD Forecast September 29, 2017, Technical Analysis

The Australian dollar fell rather precipitously during the day on Thursday, testing the 0.78 level underneath. This market offered a bit of support in that area, and it looks likely that we will bounce from here. I think there is a significant amount of support extending down to the 0.7750 level, which was the top of a major consolidation area. If that’s the case, looks like we will bounce from here and go looking towards the 0.80 level above, and it looks very likely that this is going to be another attempt to break above that level. Breaking above that level would be a longer-term “buy-and-hold” signal, as it should show that the Australian dollar is ready to go much higher. I believe that the market then could go as high as 0.90 and possibly even parity.
If we do break down below the 0.7750 level, then the Australian dollar is completely broken, and we probably go down to the 0.75 level after that. Pay attention to the gold markets, because they have a certain amount of influence obviously, and I think that we should continue to see quite a bit of volatility but I think given enough time the markets will have to show where they are going longer term. If you are patient enough, you should get a clear signal as to which way to trade, and I think this is a perfect area to start looking for it. On longer-term charts, this has a significant amount of importance, and that is always the best way to trade, looking for these larger timeframe support and resistance levels. Because of this, I am bullish but I recognize again that a breakdown below the 0.7750 level is very negative. In the short term, I suspect that we are going to go to the 0.79 level.