AUD/USD Price Forecast March 26, 2018, Technical Analysis

The Australian dollar initially tried to rally during the day on Friday but found enough resistance near the 0.7750 level to turn things around and form a negative looking candle. We are sitting on top of a massive amount of support though, so unless we get some type of major escalation in the trade war, I suspect that the Aussie should start to form a bit of a base in this region. There’s a lot of support extending down several handles, but if we break down from here, the next obvious support level for me is the 0.76 level, as it coincides with the daily uptrend line. Otherwise, if we break above the top of the candle for the Friday session, it’s likely that we could then go to the 0.7875 handle.

Pay attention to the gold markets, they always have their influence obviously, and I think that given enough time we will probably see this market find reasons to move based upon leaders from the United States and China, as this weekend could be a very interesting new cycle. I suspect that the open on Monday will be very violent, assuming somebody says something, which is almost impossible to believe that they won’t. Longer-term, I think that we will find buyers eventually, and go looking towards the 0.80 level, which has been a fulcrum for price for decades. I do like the longer-term outlook for the Aussie dollar, but the next couple of sessions could be very tricky to say the least.