AUD/USD Price Forecast March 19, 2018, Technical Analysis

The Australian dollar has rallied initially during the trading session on Friday but found the 0.78 level to be a bit too resistive for the market to continue going higher. The Industrial Production figures coming out of the United States were stronger than anticipated, and that seemed to throw a lot of money at the US dollar. Beyond that, the Australian dollar will be highly sensitive to any talk of a trade war, so therefore you should keep this in mind, as the market uses the Australian dollar is a proxy for both gold and commodity markets, so I think that the Aussie dollar will be an interesting place to trade.

The Australian dollar should continue to be very sensitive the gold markets, but now that we have broken down a bit, I think if we break down below the 0.77 handle, the market would probably go down to the 0.76 level, and then the 0.75 handle. On the other hand, if we can break above the 0.78 level, that might convince me to start buying again, especially if the gold markets show signs of strengthening. The market participants will continue to be very jittery, but I think that the market will continue to test the overall uptrend in channel, which is that uptrend line that I mentioned. The 0.75 level would be a break of that level, but it’s a large, round, psychologically significant number that would probably attract a lot of attention. In general, I believe that the pair is going to be very noisy.