AUD/USD Forecast May 11, 2017, Technical Analysis

AUD/USD daily chart, May 11, 2017

The Australian dollar had a very bullish session on Wednesday, but found the 0.74 level to be far too resistive. The gold markets of course offer quite a bit of bearish pressure on the Australian dollar as they fall apart, and if that’s the case, I prefer shorting this market, not buying it. Currently, the US dollar seems to be relatively strong, and that of course will be reflected in the price of this market. Alternately, I do recognize that a move above the 0.7425 level would be a very bullish sign. I believe that any rally now will run into far too much in the way of resistance to hang onto. That gives me an opportunity to sell at higher levels, but I’m also willing to break down and sell in current form as well.

Selling the rallies short-term, moving towards lower lows

I believe that selling short-term rallies will be the way going forward, but I also recognize that the longer-term charts dictate that we could be going as low as the 0.70 level underneath. With this being the case, I believe that longer-term traders are already shorting this market and will continue to pile on the position sizing. With this, I believe that the momentum continues as gold markets seem to be ready to try and reach the $1200 level, and that should continue to pick up the pressure. If we did a breakout to the upside, although I don’t think it’s going to happen, the Australian dollar would be more of a longer-term “buy-and-hold” proposition as it will take some time to get to the 0.75 handle above. That area of course has a certain amount of psychological importance to it. Because of that, it makes a nice target.

Written by FX Empire