AUD/USD Forecast September 21, 2017, Technical Analysis

AUD/USD daily chart, September 21, 2017

The Australian dollar exploded to the upside on Wednesday, using the 0.80 level as a springboard. Now that we’ve clear that level and more importantly, are testing recent highs, it’s likely that we will continue to see bullish pressure. This will be especially true if the gold markets can pick up some positivity, and I think that there is plenty of support near the $1300 level underneath. This is a market that should have a bit of a floor at the 0.80 level after this impulsive move, and I look at pullbacks as potential buying opportunities in what should be a large move. After all, the 0.0 level has been important on longer-term charts going back decades, and I think that should continue to be the case. With that in mind, I believe the dips offer the best value in this market.

If longer-term charts are followed, I think that we will probably go looking for the 0.90 level on a move higher. We could even go to parity, but that obviously is a very long-term move and not something that we will see anytime soon. If we can stay above the 0.80 level, this is a “buy only” market for the near future, thereby making it one of the easier trades out there. I think that given enough time, we probably will continue to see strength and the Australian dollar, especially considering that other markets like copper are very bullish this year, and should continue to propel demand for Australian dollars. If the Asian economies can pick up a little bit more, that should help as well as the Australians are the supplier for Asian growth when it comes to raw materials. If we were to break down below the 0.7950 level now, that would be very negative. However, I don’t see that happening.

Written by FX Empire