AUD/USD Forecast October 19, 2017, Technical Analysis

AUD/USD daily chart, October 19, 2017

The Australian dollar initially fell during the day on Wednesday, testing the 0.7820 level again as we did on Tuesday. This is an area where buyers are starting to come back into the market at, but I also recognize that there’s probably even more support at the 0.78 level. I think that the support level runs down to the 0.7750 level underneath, as we have seen such a massive amount of buying pressure in that general vicinity, and it also was previous resistance of the market broke out of. Because we have broken out and pulled back, and looks likely that the buyers are ready to come back into the market. I think that eventually we will reach towards the 0.80 level over the longer term, but I also recognize that it is going to be very difficult to overcome. I also recognize that gold needs to help as well, and it doesn’t seem to be doing so.

If we were to finally break out above the 0.81 level, then we are free to go to much higher levels longer term. Nonetheless, I don’t think it’s going to happen in the short term, and I believe that we are going to continue to see significant amounts of volatility. If we were to pull back from here, it’s not until we break down below the 0.7750 level that I would feel comfortable shorting this market, and would also be paying attention to gold as well, as the 2 tend to move in the same general direction. Right now, it’s probably a short-term traders market at best, so longer-term trading in the Australian dollar is very difficult to say the least. Longer-term though, if we can break above the 0.81 level, the market should then go to the 0.90 level after that.

Written by FX Empire