AUD/USD Price Forecast August 16, 2017, Technical Analysis

AUD/USD daily chart, August 16, 2017

The Australian dollar initially tried to rally on Tuesday, but found enough resistance at the 0.7875 level to turn around and continue to fall. I believe the gold markets are going to continue to suffer, as the fear premium is starting to come out of the markets. With the situation between the United States and North Korea cooling-off, there is a lot less in the way of fear buying when it comes to gold. Obviously, the Australian dollar is highly influenced by gold, so as it falls it’s just another reason for the Aussie to drop. I believe that short-term rallies will continue to be selling opportunities, because there is a major area at the 0.7750 level that has yet to be tested after a breakout. Because of this, I think that short-term selling continues to be the way going forward in this market for the next several sessions at the very least. Once we get down to the 0.7750 level, I will have to reassess the entire situation. However, I certainly think that the market is going to be attracted to that region.

Written by FX Empire