AUD/USD Price Forecast March 27, 2018, Technical Analysis

With gold markets rallying a bit during the trading session on Monday, it’s possible that the Australian dollar should follow. The 0.77 level has been supportive more than once, as well as resistive. At this point, I think that the market will continue to find buyers in this area, perhaps sending the market towards the 0.78 handle, and then eventually the 0.79 level. If we do break down below the 0.77 handle, the market goes looking towards the previous uptrend line which I have marked on the chart. That should have the Aussie reaching towards the 0.76 handle.

The market has been grinding lower over the longer term, and at this point I think we are trying to form some type of base. These are often messy moves, so certainly you will have to have a certain amount of conviction to hang on to the position. Currently, I think that the area is looking rather resilient, so it’s likely that we will continue to see a lot of fight just below. I think that if we break down to a fresh, new low, then traders will again try to regroup near the uptrend line that goes back several months. If we break down below there, then the next obvious area would be the 0.75 level, which was the beginning of the entire move higher over the last several months. Ultimately, I think that this is a position that you can build up over longer-term moves, but you need to see the market work in your favor before adding.