AUD/USD Price Forecast March 21, 2018, Technical Analysis

The Australian dollar has initially fell during the trading session on Tuesday, but you can see is starting to bounce a bit on the chart. I think that the 0.77 level is going to continue to be a fulcrum for price, at least until we get the announcement coming out of the Federal Reserve suggesting how many interest rate hikes there are going to be for the rest of the year. Do not be surprised if they don’t bother being very clear with their statement, it seems to be that’s been the game for the last several years. However, if we do get some clarity that could greatly influence where this market goes next.

If we get a potential 3 interest rate hikes for the rest of the year, then this pair should rally. However, if we expect for interest rate hikes for the rest of the year, it’s likely that we would see this pair fall significantly, perhaps towards the 0.76 line initially, which is the uptrend on the daily chart of the of trending channel, and possibly even below there to the 0.75 level. Expect a lot of volatility regardless what happens, and as per usual, pay attention to what gold does as it is a major driver of the Australian dollar. The volatility should continue to be a major issue, so keep your position size small until we get a significant and impulsive move.

Written by FX Empire