AUD/USD Price Forecast January 9, 2018, Technical Analysis

AUD/USD daily chart, January 09, 2018

The Australian dollar has climbed a nice up trending channel over the last several sessions, but finally break down below the uptrend line on Monday. Ultimately, looks as if were going to go down to the 0.78 level underneath, perhaps even the 0.7750 level, which was the beginning of the overall channel. I look at this market as one that will be influenced by gold, which has been a little lackluster during the Monday trading session. However, we have seen a lot of buying pressure in general, and I think that the Australian dollar will go higher overall.

It’s not until we break down below the 0.77 level that I would be concerned about the uptrend, and the market will more than likely go to the 0.80 level after that. That is an area that has been important over the longer-term charts, and a break above that level signifies that it’s more of a “buy-and-hold” scenario. Until then though, it’s probably a situation where you will have to trade the short-term trend, and aim for short gains at best. This market should continue to be volatile in general, but I do favor the upside longer term. Pay attention to the US dollar, as the market seem to be moving more based upon the bias of the greenback than anything else. The FX markets have recently been trading either with or for the US dollar, and that should continue to be the way going forward. The new year has brought in more money, and it looks as if the US dollar is going to be sought. That being said, short-term pullbacks seem to be forming.

Written by FX Empire