AUD/USD Forecast November 7, 2017, Technical Analysis

The Australian dollar rallied a bit during the day on Monday, breaking above the 24-hour exponential moving average. This was mainly due to the support being found at the 0.7640 level. If we rally further, I think that we will see a significant amount of resistance above, especially near the 0.77 handle, and most certainly at the 0.7750 region. That’s an area that had previously been resistive, and then got broken above. We then pulled back, found support initially, but then broke down below it eventually. Because of this, I think there will continue to be a lot of interest in that region, which I have marked by a purple rectangle on the chart. I suspect that it is only a matter of time before we start selling, and I would be even more aggressive near that purple rectangle.
Alternately, we could break down below the 0.7625 handle, I think it’s time to start selling even more aggressively. I suspect that the gold markets will continue to be a main driver of the Australian dollars well, as per usual. In general, the US dollar should continue to attract a lot of attention as the Federal Reserve looks likely to raise interest rates. I think the given enough time, we will probably go looking towards the 0.75 level, which of course has a lot of psychological importance. I believe that this market continues to offer plenty of opportunities to go short, at least until we break above the 0.78 level. Above there, then the market changes quite a bit, but I don’t think it’s going to happen in the short term. If we do breakout above the purple rectangle, then we should go towards the 0.80 level. However, I think we have a lot of work to do before that could possibly happen.