AUD/USD Forecast October 11, 2017, Technical Analysis

The Australian dollar rallied during the trading session on Tuesday, using the 0.7750 level as support. That level being used as a springboard is a very good sign, and of course the gold markets rally and helps to. The 0.78 level above is resistance, but if we can break above there, then it confirms the stability of the support level just below, which was previously resistance on longer-term charts it was broken out above. I believe that the market rallying from here could send this market towards the 0.80 level above. I also believe that resistance level extends to the 0.81 handle after that. Once we clear that level, then I think we go to the 0.90 level, and then eventually parity. The recent breakout of course is a very bullish sign, but it also should deal with the 0.80 level above, as it is the scene of a lot of noise over the last several decades.
Ultimately, if we break down below the 0.77 level, the market probably falls apart and reaches towards the 0.75 level followed by the 0.70 level after that. This is a market that will be highly influenced by both gold and copper, which both look like they are trying to flex their muscles. Pay attention to the FOMC Meeting Minutes coming out today, because if it is a bit more dovish, it’s likely that the Australian dollar will take off against the US dollar, as the greenback will fall in value, and of course gold will rally simultaneously. This will be a bit of a “double whammy” for the market. This could be a very violent moved to the upside, which would be very good for the chances of breaking out. Alternately, if gold falls over and the US dollar rallies, then we should see this market fall apart. This is a very vital region we are trading in.