AUD/USD forecast for the week of October 2, 2017, Technical Analysis
The Australian dollar fell during the week, dropping down to the 0.78 region. I think there is a certain amount of support here, extending down to the 0.7750 level, as it was the scene of significant resistance in the past. Once we broke above there, was very bullish sign for the Aussie, and it now looks as if the Gold markets are trying to turn around and rally as well. That could potentially help the Australian dollar going forward, so pay attention to that. Any balance from here should be a good sign that were going to go back to test of the 0.80 level, which is a major level going back decades. A clearance of the 0.81 level would be a longer-term “buy-and-hold” signal, sending this market to the 0.90 level after that. I believe that the market is likely to be noisy, but in the end, I think the buyers will return. I see far too much in the way of support below to think of the Australian dollars in a settling roll over completely.
Although it might be noisy, I think that if you’re patient enough you should see returns. At the very least, I think the market will bounce towards the 0.80 level again, because it is far too important for traders to ignore. If we did breakdown below the 0.75 level, that point I would become somewhat concerned but we have seen so much in the way of positivity over the last several months that I think that by proxy traders are going to just jump in and go long anytime they can. Adding slowly might be the best way to go though, as it can keep you in the trade for longer and keep you out of trouble.
AUD/USD Video 02.10.17
This article was originally posted on FX Empire