AUD/USD Price Forecast March 6, 2018, Technical Analysis

The Australian dollar has rolled over a bit after initially trying to rally during the trading session on Monday, but as you can see we have a certain amount of support just below, especially near the 0.77 level. I think this level will continue to attract some buying pressure, but if we were to make a fresh, new low, then I think the market could unwind to the 0.75 handle. This market is probably reacting more to the overall attitude of the US dollar than anything coming out of Australia, so paying attention to the US Dollar Index is probably the best way to trade this market. Obviously, if it rises, that should send this pair lower.

The other external factor is always gold, and of course if gold rallies, that could help this market as well, but by extension we should see a lower US dollar anyway. If we can break above the 0.7775 level, that’s a sign that we will probably try to break out of the potential base that we are forming, and perhaps go much higher. I think that the market breaking above the recent high from Friday will probably have this pair targeting the 0.79 level above, which has been important more than once. If we break down, I’m not expecting some type of melt down, rather a “sell the rallies” type of move lower over the next several weeks. Currently, when I look at the hourly chart it does look as if the buyers are trying to make it stand though, so I anticipate a bounce more than anything else.

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