AUD/USD forecast for the week of August 7, 2017, Technical Analysis

The Australian dollar initially tried to break above the 0.80 level again during the week, but found too much in the way of resistance above, turning around and forming a bit of a shooting star. This is a week that has wiped out most of last week, and because of that it looks like we may roll over and reach towards the 0.7750 level underneath. The 50% Fibonacci retracement level has offered resistance as well, so I think that we will see some softness in the short term. I don’t know if we can break down below the 0.7750 level, and a pullback to that level is a simple return to the previous resistance barrier, which is very common in the world of technical analysis.

Support below

I think that the support level below will be vital. If the 0.7750 level gets broken down, we could continue to go much lower. If we find some type a supportive candle in that area, it could be a nice buying opportunity longer term. Alternately, if we break above the 0.81 handle, that would be a clearance of the 50% Fibonacci retracement level, and we should go looking for the 61.8% Fibonacci retracement level at the 0.84 handle above. Pay attention to gold, it makes its presence felt in this market over the longer term. However, I should say the gold has rolled over after the jobs number coming out of America. Expect volatility, but we should continue to see the overall attitude of the market affected by the US dollar.

AUD/USD Video 07.8.17