AUD/USD Forecast October 27, 2017, Technical Analysis

The Australian dollar had a very volatile session on Thursday, rallying a couple times, but also breaking down a couple of times. The one thing to take away from this chart is that the lows continue to go lower, and that suggests that there is more selling pressure to come. I look at this market is one that you can sell rallies in, and the 0.7750 level above continues to be a bit of a ceiling in the market. Ultimately, I don’t have any interest in trying to figure out when to turn things around, but I also would recognize that the gold markets gave little comfort to the Australian dollar during the day. I think it makes sense that we go down to the 0.75 handle based upon longer-term charts, so that’s what I’m aiming for.
However, it’s likely that the market will bounce around and chop occasionally, as the Australian dollar is a proxy for not only gold, but Asia as well. Because of this, it’s going to be difficult to get a handle on this market at times, but one thing that you can look to is the longer-term trend, which certainly seems to have gotten bearish suddenly. If that’s the case, it makes sense that the Aussie continues to struggle in general, but eventually will find footing, perhaps at a lower round number such as the previously mentioned 0.75 handle where I see a lot of structural support. In the meantime, pay attention to gold, we should run incongruence with that market, but quite frankly this is a very messy chart over the last couple of days, as it looks like the buyers are trying to support this market, but I doubt they are going to be overly successful in the short term.