AUD/USD Price Forecast January 5, 2018, Technical Analysis

I believe that the Australian dollar could be an interesting currency to watch during the trading session on Friday, as the Nonfarm Payroll Announcement comes out. Ultimately, this market will react as a “risk on/risk off” barometer, so therefore if the jobs number is good, you might see a short-term pullback, but longer-term I think that traders will get involved in this market. The 0.78 level underneath is massively supportive, as it is the scene of the gap that sent this market higher earlier this week. I think we are going to go looking towards the 0.80 level above, which is a large number on charts going back decades.

Once we clear that level, it becomes more of a buy-and-hold scenario, and I would also be adding on dips. I believe that the US dollars can continue to suffer going forward, as we are seeing weakness in the greenback against almost everything. The Australian dollar of course is highly influenced by the gold markets, so if the US dollar is going to fall, gold rallies, and drives of demand for the Aussie. Volatility will probably be an issue in this market, but I believe that there is more than enough reason to think that we will grind higher over the longer term. If we did breakdown below the 0.78 handle, I think there is plenty of support at 0.7750 level below as well.

Economic Calendar