AUD/USD Price Forecast February 7, 2018, Technical Analysis

The Australian dollar has been noisy during the trading session on Tuesday, as we are below the 0.79 level, an area that I have previously mentioned as being important to the overall consolidation. Longer-term charts suggest that the 0.80 level is essentially the “pivot point” of the longer-term chart going back decades, and therefore it’s an area that’s going to be very difficult to deal with unless you can hang on through the volatility. If you can, then adding slowly might be the way to go, building up your position as the market moves in your favor. If we can break above the 0.79 level, then I think that we will break out towards the 0.80 level.

In the meantime, pay attention to the gold markets because they of course tend to lead the Australian dollar, so if we can see some type of break out in the gold markets, that should continue to push the Aussie higher. I do recognize that the 0.79 level should be a bit difficult to deal with, and of course there is a lot of noise between there and the 0.7950 level. However, I feel that if we break above the round number, and essentially forms a “W pattern” on the hourly chart, showing that we are trying to rally. If we were to break above the 0.80 level, then we go even higher. The next stop would be the 0.81 level which was essentially the recent highs. Obviously, break above there becomes more of a buy-and-hold scenario.