AUD/USD Price Forecast November 13, 2017, Technical Analysis

AUD/USD daily chart, November 13, 2017

The Australian dollar went sideways initially during the trading session on Friday, and then broke down significantly. The 0.7650 level looks to be a bit supportive, and I think if we can break down below there we are probably free to go back down towards the lows again from the Tuesday session. A breakdown below the 0.76 level should be even more negative, and we could go to the 0.75 level. That area being broken to the downside is a major change of events, and sends this market looking to at least the 0.73 level, if not the 0.70 level. In the meantime, I suspect that it is going to be very noisy and unless the gold market picks up again, it makes quite a bit of sense for this market break down.

If we bounce from here, we will probably continue to struggle to break above the 0.7750 level, which is the beginning of massive resistance based upon longer-term charts. I believe in selling the rallies on signs of exhaustion in the Australian dollar going forward, and until we were to break above the 0.78 handle. That seems like something that’s very unlikely to happen, so I continue to believe that the Australian dollar will continue to offer plenty of opportunities to short, as the US dollar seems to be favored. Also, keep in mind that any type of geopolitical shock tends to work against the Australian dollar and in favor the US dollar, even if gold does rise. Because of this, I think there are a multitude of reasons to continue to punish the market if it gets to be a bit ahead of itself to the upside. The noise continues, but still favors the greenback from everything I see on the chart.

Written by FX Empire