AUD/USD Forecast August 30, 2017, Technical Analysis

The Australian dollar initially fell on Monday in reaction to the North Korean missile being launched. However, the gold markets exploded to the upside and we are now approaching the vinyl 0.80 level. Although this is very bullish, I am very cautious about getting into this market until we clear the 0.0 level as it is so important going back decades. Pullbacks could be buying opportunities for those of you who wish to “jump the gun”, but that’s not how I choose to trade. I need to see some confirmation to the break out, so that I can put on a position that I will hold for a very long time. The 0.80 level goes back to at least the 1980s that I know of personally, as being an area of significance.

Follow Gold

Gold markets have broken out above the $1300 level, but they need to break above the $1350 level to really speed up. Once they do, I think the Australian dollar will go much higher, as a proxy for the currency traders that don’t have access to gold. I don’t have any interest in shorting this market regardless, because quite frankly there is an extreme amount of bullish pressure underneath and we have been in an uptrend for some time. Expect a lot of volatility, but quite frankly this is a “one-way trade”, at least as long as gold looks lively. Ultimately, this is a market that should continue to be volatile but seems to have plenty of upside possibilities to it. I currently believe that the 0.79 level is a bit of a “floor in the market”, and with that being the case it’s likely that value hunters will come to this market every time the sellers get aggressive.

AUD/USD Video 30.8.17