AUD/USD Price Forecast January 12, 2018, Technical Analysis

The Australian dollar has rallied a bit during the trading session on Thursday, as it looks likely we are going to continue to go higher. Gold markets can break out, that should send the Aussie much higher, and more of a buy-and-hold market of sorts.

I think that pullbacks continue to offer value, and I believe that the 0.78 level is going to be a bit of a “floor” in the market, and I think that traders will continue to be interested in this currency as it represents not only gold, but growth in Asia. If there is going to be strong global growth, then the Australian dollar should do well. After all, Australia is a major contributor of commodities for half of the world, and that of course represents construction and global expansion. The US dollar is on its back foot, so it’s likely that the Aussie will gain because of that fact as well. I recommend adding on dips going forward to the upside, but I also recognize that breaking above the 0.80 level is going to take a significant amount of momentum, so it may take several attempts to occur.

If we were to break down below the 0.78 level, the market could go looking towards the 0.75 handle, which has been massively supportive in the past. I think that a breakdown below that level would be catastrophic for the Aussie dollar. However, I suspect that has about a 10% chance of happening at this point.

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