AUD/USD Price forecast for the week of January 29, 2018, Technical Analysis

The Australian dollar has pulled back a bit during the week but has found enough support underneath to turn things around and break out to the upside. We are testing the 0.81 handle, which is extensively the 50% Fibonacci retracement level from the overall move. Once we clear that level, I think the 0.82 level will be targeted, and above there the market is probably free to go much higher. In fact, I believe that the market could go to the parity level eventually, but we will need to see gold markets break out and above the $1400 level to achieve this. If it does, the market should continue to see the US dollar get pummeled, especially as the Aussie as it is so sensitive to the yellow metal.

You can see that we have been in an uptrend as of late, and we are bit overbought, so don’t be surprised if we get a little bit of a pullback, but I think it will be short-term at best. The momentum is rather significant, but I also believe that the market is going to be very choppy. The greenback in general has been selling off, so pay attention to the US Dollar Index as well, because if it sells off, that should add pressure in the gold markets, which of course translates to this market. I suspect that there is a significant amount of support at the 0.80 level, but if we break down below there it’s not until we break down below the 0.79 level that I would be concerned as I look at that area as a bit of a “zone.”

AUD/USD Video 29.01.18