AUD/USD Price Forecast February 1, 2018, Technical Analysis

The Australian dollar has bounced significantly during the trading session on Wednesday, reaching towards the 0.81 handle. There is a bit of noise just above, but if we can get free of this barrier, the Australian dollar should continue to grind higher, perhaps reaching towards the 0.85 level given enough time. That is my longer-term target, but my extreme long-term target is now the 0.90 level. That’s not to say that we are going to get there right away, or that it’s even going to be easy. However, if we continue to see general softness in the US dollar, the gold market should rally, and that should drag the Australian dollar right along with it.
The 0.8050 level underneath offer support, and I believe that it is also offering a bit of a short-term “floor” in the market, with the 0.80 level under that being even more supportive. The Australian dollar has rallied quite nicely lately, but now it appears that we are waiting for the jobs number on Friday and trying to build up the necessary momentum in general. It is coming, but it may take a while to happen. Once it does, I anticipate that this move should be rather quick, and I think that a lot of fresh money will come flooding into the Aussie dollar at that point. Another thing that could help is if the Asian markets can continue to do quite well, as Australia is a major supplier of commodities to the region.

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