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

The Australian dollar has broken down significantly during the trading session on Friday, mainly in reaction to the stronger than expected jobs number coming out of the United States. By slicing through the 0.80 level, it’s likely that we will continue to see negative pressure, but if we can break above the 0.80 level, then the market could go much higher. We could go back towards the 0.8120 level, which was the highs. A break above there is more of a “buy-and-hold” situation.

If we break down below the 0.79 level, I think that the Australian dollar will go much lower, perhaps reaching towards the 0.7750 level underneath. This is a market that should continue to be very volatile, and of course follow the gold markets as per usual. The gold markets can find buyers, that should drive people into the Australian dollar as it is the largest exporter of gold in the world. A break above the 0.80 level is going to take a significant amount of momentum, but quite frankly I think you should probably wait for that to start buying, or perhaps of value at a lower level. If we get that value presenting itself, I would then switch towards the daily charts to find the signal. Right now, it’s probably best to stand on the sidelines and let the next day or so shakeout before putting money to risk. In general, I think volatility is assured.