AUD/USD Price Forecast March 29, 2018, Technical Analysis

The Australian dollar has broken down a bit during trading on Wednesday, slicing through the 0.77 handle. The market looks likely to continue going lower, especially if we get some type of sell off in the stock markets or even the gold market, as it is a bit of a risk indicator. I think that if you break down below there, the market goes down to the 0.76 handle, which is the uptrend line from the overall daily channel. If we break down below there, the market then goes down to the 0.75 handle. However, if we were to rally from here I think that a clearance of the 0.77 level on a daily candle could send the buyers back in.

I like buying the Australian dollar right along with gold, but at this point I think there is a lot of noise around the world that will continue to cause issues with risk on currencies such as the Aussie. I believe that the noise in this in this market is only going to continue, as stock market suddenly look very volatile. The market rallying from here of course would be a good thing, but it’s only a matter of time before we will see volatility pick up again. The market continues to be one that is reactive to headlines and of course risk appetite as per usual, but right now it looks very negative, so I think that the market is likely to drift lower in the short term.