AUD/USD Price Forecast January 11, 2018, Technical Analysis

The Australian dollar has been very noisy during the day, bouncing from the 0.78 handle, reaching towards the 0.7875 level above, and then pulled back slightly. I think that the market continues to find buyers on dips, as the US dollar looks a bit susceptible to selling pressure going forward. I think that a break above the 0.7875 level should send this market looking towards the 0.80 level above, which is a large fulcrum for price overall. I think that ultimately the market should continue to find reasons to go higher, and once we break above the 0.80 level, the market should continue to go even higher over the longer term, possibly offering a “buy-and-hold” scenario. After all, that’s an area that has been very important in the past, essentially a fulcrum of price going back decades.

If we were to break down below the 0.78 handle, I believe that the market goes to the 0.7750 level underneath, and then possibly the 0.77 level. Below there, we have a “floor” in the market towards the 0.75 level underneath. A breakdown below that level should send this market much lower, as it would represent a complete breakdown in the bullish pressure. However, I suspect that is very unlikely to happen, and of course we have the gold markets to guide us as gold seems to be a good barometer of where the Aussie dollar goes. If gold can pick up a little bit of momentum, this pair should take off to the upside.

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