AUD/USD Price Forecast March 20, 2018, Technical Analysis

The Australian dollar has been very sideways during the trading session on Monday, as we dance around the 0.77 level. The markets in America were very noisy because of concerns about trade wars, and of course the overall attitude of world indices didn’t help. The Australian dollar is highly leveraged to gold, which right now looks as if it is a bit soft, but we are trading close to major support levels. Because of that, anticipate that the market participants will favor and overall “buy the dips” scenario in gold, so that could provide some support in the Aussie dollar itself.

If we can break above the 0.7725 handle, I think that the market could rally again, perhaps reaching towards the 0.70 level. If we break down below the 0.7675 level, then it looks like we go down to the 0.76 handle, perhaps even the 0.75 level which is even more supportive. There is an uptrend line below though, that measures on longer-term charts, so I think that will need to be considered as well. That is found somewhere near the 0.76 handle, so I think the breakdowns will be somewhat limited in their scope, and traders should pay attention to the lower levels as it looks likely to be a situation where we could see value hunters coming back into the marketplace, but with the noise underneath, and of course the noise around the world, it might be best to jump into this market very slowly and add as it works out in your favor