AUD/USD Price Forecast March 8, 2018, Technical Analysis

The Australian dollar has gone back and forth during the trading session on Wednesday, pulling back towards the 0.78 handle. It looks as if the buyers are trying to pick this market up now, so I think that if we can break back above the 0.78 level, it will continue the overall consolidation in that region, perhaps reaching towards the 0.785 level, and then the 0.79 level. I think that gold will have its usual influence on the market, but also the US Dollar Index will influence what goes on next.
The Australian dollar of course is highly sensitive to not only gold, but the overall risk appetite of traders around the world. I think that this market will continue to be very noisy, but most certainly has a significant amount of bullish pressure underneath, and I think that we will eventually go looking towards the 0.80 level above. That’s an area that has been a bit of a magnet for price, and I think that we will continue to “revert to the mean”, which on the longer-term charts I think means the 0.80 level. At this point, I’m a buyer of dips, but I also recognize that we will have the shakeouts occasionally. I don’t have any interest in shorting unless we make a fresh, new low, which is somewhere closer to the 0.77 handle. At that point, I would anticipate that the Aussie would go down to the 0.75 level. Expect volatility regardless.

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