AUD/USD Forecast September 27, 2017, Technical Analysis

AUD/USD daily chart, September 27, 2017

The Australian dollar fell significantly during the session on Tuesday, as the markets continue to look tenuous at best. Remember, the Australian dollars highly correlated to gold, and of course the overall “risk on” attitude in general. The markets have been shaky at best, as we are churning through the end of summer and the beginning of fall. This market has rolled over significantly over the last 24 hours, and it now looks as if we’re going to go looking towards the 0.7750 level underneath which was previous resistance. That was a significant break out, and I think that breakout should continue to see interest by the trading community, and with that being the case, I am very likely to continue selling until we get there. In fact, it’s not until we break above the 0.80 level that I’m comfortable buying, least at the moment.

Pay attention to gold, it has a major influence on this market, so we start to see significant bullish pressure in the gold markets again, that could translate into a higher Australian dollar, just as copper can have the same effect. However, if it’s more of a “risk off” event such as noise coming out of North Korea or Washington, then both can fall. Ultimately, this is volatility just waiting to happen and I would of course point out that the 0.80 level is a major resistance barrier going back decades, just as it is a major support level. Because of this, I anticipate that there will be a lot of noise around this region, and so far, we have not been disappointed. A break above 0.81 is a longer-term “buy-and-hold” scenario, which of course I was talking about recently. However, it seems like a long time ago at this point.

Written by FX Empire