AUD/USD Price Forecast February 22, 2018 Technical Analysis

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Updated: Feb 22, 2018, 04:56 UTC

The Aussie fell again on Wednesday as the bearish pressure continues. The US dollar has gotten a bit of a reprieve over the last several sessions, as it was probably oversold. The markets will look to be getting close to massive support though, so I think a turnaround is coming.

With the Aussie falling on Wednesday, I believe we are starting to get close to a potential buying area, in the form of not only the 50% Fibonacci retracement level, but also the 0.78 level, an area that will attract money because of the round number, and of course some structural action that we had seen in the past. With this, I think that being patience might be necessary, but I think that eventually we will see a bounce, especially if gold markets start to rally. This has a long running correlation with this pair, as Australia is the world’s largest exporter of gold, it makes sense that more demand for gold will bring up the demand for the Australian dollar. We’ve recently seen a significant pullback, and that pullback should bring out a lot of value hunters.

If you’ve been following me here at FX Empire for any length of time, you know that I look at the 0.80 level as a major pivot point going back decades. It is not a surprise to me that we need to pull back to build up the necessary momentum to break above that level. Quite frankly, I think most of this year will be this market tried to convince itself to break out above to fresh, new highs. It’s going to take a lot of work, but I do think that eventually it happens. In the meantime, I buy these dips.

AUD/USD Video 22.02.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.