AUD/USD Price Forecast November 16, 2017, Technical Analysis

AUD/USD daily chart, November 16, 2017

The Australian dollar fell significantly during the trading session on Wednesday, breaking down to the 0.7575 handle. We bounced from there, but found enough resistance at the previous support level to turn things around and fall significantly. I think that we are going to go down to the 0.75 handle underneath, which of course is a large, round, psychologically significant number. If we were to break down below there, the market should then go down to the 0.7350 level which is much more important on the longer-term charts. Given enough time, we could break down below there, especially if the US dollar starts to pick up steam again or if we have some type of major “risk off” event. At this point, I can write a list of potential trouble around the world geopolitically that would fill up the rest of this article.

In the meantime, I believe that selling short-term rallies will continue to pay off, but we are getting a little bit oversold and the short-term charts. If we can bounce back towards the 0.76 level and show signs of exhaustion, I’d be more than willing to throw another short position on, and then perhaps add to it on a breakdown below the 0.75 level on the daily charts. I’m not overly interested in going long of the Aussie dollar, unless of course gold breaks out, and not because of a geopolitical issue, but a selling off the US dollar in general. We did see a little bit of that during the day on Wednesday, but quite frankly that is a bit of a fluid situation as it involves the US Congress, and their lack of headway when it comes to tax reform. Given enough time though, they will pass something.

Written by FX Empire