AUD/USD Price Forecast January 24, 2018, Technical Analysis

The Australian dollar has fallen a bit during the trading session on Monday, reaching down towards the 0.7950 level. I would anticipate some type of bounce on short-term charts, as we continue to consolidate below a major level. If we can break above the 0.80 level, the market should feel free to go much higher, perhaps into a “buy-and-hold” attitude. If we can break above the 0.81 level, I would not only be buy-and-hold, but I would also be aggressive.

Typically, this pair needs the gold market break out to the upside direction as well to solidify the move, and I think that is going to continue to be the case. Gold markets are drifting a bit sideways, so that might hurt this market in the short term. However, I see so much in the way of support underneath that I feel it’s only a matter of time before the buyers push to the upside yet again.

If we did breakdown, I anticipate that the 0.78 level will be a major place of contention, and any short-term selling opportunity will be stymied at that level. If we break down below there, that could crush the entire trend, but I think that is very unlikely to happen, and presently rate that at about a 10% probability. There will be a lot of volatility, but I think we are trying to build a nice-looking base to go much higher. Remember, the market should go higher eventually, but it needs to coincide with gold.

Economic Calendar