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AUD/USD Price forecast for the week of February 5, 2018, Technical Analysis

Christopher Lewis

The Australian dollar has formed a very negative candle during the previous week, as the jobs number had people buying the US dollar. The 0.80 level being broken to the downside is a very negative sign, and the fact that we are closing towards the bottom of the candle suggests that we are going to continue to go a bit lower. However, we are in an uptrend and I think that this will offer a nice buying opportunity at lower levels. In fact, I have no interest in shorting this market until we break down below the 0.75 level, and I think that ultimately this gives us an opportunity to pick up the Australian dollar “on the cheap.”

Pay attention to gold markets, because if they can start rallying that should send this market to the upside and have people buying the Australian dollar hand over fist. I would expect a lot of choppiness, but be very cautious, and wait for at least a daily candle to confirm some type of bounce before putting money to work. By trying to go in and buy this market on short-term charts, you could miss the big picture which certainly looks as if a reversal is necessary to build up the momentum that it is going to take to have the massive move higher happen. This is a major level on charts going back decades, so putting in all of this work isn’t much of a surprise. week, showing signs of exhaustion. Now that we are below the 0.0 level again.

AUD/USD Video 05.02.18

This article was originally posted on FX Empire