AUD/USD forecast for the week of January 17, 2017, Technical Analysis
The Australian dollar broke out during the week, slicing above the 0.7750 level. The market looks very bullish, but there is a bit of a “zone” above that continues to offer resistance. This is a good sign that we should continue to go higher though, but I think short-term pullbacks are likely. Ultimately, the market looks as if it should continue to go higher based upon not only the size of the candle, but the fact that the highs have been broken and of course the lows continue to get higher as well. We are forming a bit of a decent sized ascending triangle, and I think that we will probably test the 0.80 level above.
Gold
Gold has a major influence on the Australian dollar as most of you know, so course paint attention to that market is important as well. It looks as if it is trying to break out a little bit to the upside, and that should give us yet another reason that the market for the Australian dollar should continue to go higher. Pullbacks should be supported, but you will probably have to find a short-term chart to look for that in the Australian dollar. I think the given enough time, the market will reach for the 0.0 level, and then possibly even break above there. I don’t have any interest in selling, least not yet, but could change if we break down below the 0.75 level codes that would be a massively negative signal. A breakdown below there could send the market down to the 0.7325 handle next. I believe that we would need to see gold markets rollover rather significantly for that to happen though. In the meantime, I believe in upward of volatility.
This article was originally posted on FX Empire