AUD/USD Price Forecast February 8, 2018, Technical Analysis

AUD/USD daily chart, February 08, 2018

The Australian dollar has rolled over during the trading session on Tuesday, showing signs of weakness yet again. Pay attention to the gold markets, because they of course will have influence on what’s going on here, and I think that the market is probably running towards the US dollar due to bond markets. We’re starting to see yields rise in the United States, and that of course attract money. However, the 0.78 level has been very supportive in the past, and I think that could be where we start to see buyers come back into this market. Alternately, if we could break above the 0.79 level, then it would be a “higher high” just waiting to happen, and it should send this market towards the 0.80 level above.

I think volatility is here to stay, and ultimately you are looking for value when buying the Australian dollar, and we are certainly starting to see that enter the market. Because of this, I am looking for some type of bounce or supportive daily candle to put money to work. The alternate scenario of course is the break out to the “higher high”, but it doesn’t look likely to happen quite yet. You can see on the chart I have the 3-day moving average in terms of hours that has been very reliable as of late. If we can break above there, then I think momentum could pick up as well. In the meantime, I don’t have any interest in shorting, because there are so many support levels underneath.

Written by FX Empire