The Australian dollar rallied a bit during the trading session on Thursday, reaching towards the 0.78 level above. We have pulled back slightly from there, but I think we are simply trying to build enough momentum to break out above the 0.78 level, then go looking towards the 0.80 level which I think is the real target. That’s an area that has been a very important level on longer-term charts, and essentially one that went back decades. I think if we can break above the 0.80 level, that should be a nice buying opportunity for the longer-term traders. In the meantime, I suspect that area should be massively resistive, and some type of exhaustion in that area could be a nice opportunity to either take profit or start shorting. If we break above the 0.80 level, then it becomes more or less a “buy-and-hold” scenario.
If we break down below the 0.77 handle, then the market goes to the 0.75 level. The 0.75 level underneath is massive support, and I think if we can break down below there it would be very negative for the Australian dollar, but keep in mind that the gold market has its say in this market as well. Gold markets have a massive influence on the Aussie dollar as the largest exporter in the world of gold of course is Australia, so the 2 markets do tend to move hand-in-hand over the longer term. Currently, gold looks as if it is trying to break out to the upside, so the AUD/USD pair should as well.
AUD/USD Video 29.12.17
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD/USD and NZD/USD Fundamental Daily Forecast – Aussie Poised to Post Best Annual Performance in Seven Years
- Crypto-chaos at Year-end
- ETH/USD Price Forecast December 29, 2017, Technical Analysis
- Bitcoin Gold DASH and Monero Price Analysis December 29, 2017, Technical Analysis
- DAX Index Daily Fundamental Forecast – December 29, 2017
- EUR/USD, AUD/USD, GBP/USD and USD/JPY Daily Outlook – December 29, 2017